Dallas Fed Manufacturing Index drops to 28.1 from 30.9 in September vs 31 expected

"Texas factory activity continued to expand in September, according to business executives responding to the Texas Manufacturing Outlook Survey," the Federal Reserve Bank of Dallas reported on Monday and added: "The production index, a key measure of state manufacturing conditions, dipped six points to 23.3, indicating output growth continued but at a slower pace than last month."

Key takeaways from the press release

• The new orders index fell nine points to 14.7, its lowest reading in six months.
• Similarly, the growth rate of orders index slipped to 11.5, also a six-month low.
• The capacity utilization index retreated slightly to 21.6, while the shipments index fell five points to 20.8.
• The general business activity index edged down but remained highly elevated at 28.1. 
• The relatively new index measuring uncertainty regarding companies’ outlooks moved up four points to a new high of 19.9.
• The employment index remained positive but dropped 11 points to 17.7.