Dallas Fed business outlook survey soared to 10.2 in November (smashing expectations of +2.0) - the first expansionary print in 22 months.
Across the board exuberance was evident with 11 of the 15 components soaring double-digits. However, it is the post-Trump victory "hope" that really spiked - six month ahead expectations for increased business exploded by the most since 2007.
But gains were seen across the entire survey..
We leave it to one of the Dallas Fed survey respondents to explain...
We are looking forward to the end of the disastrous socialist policies of the last eight years. Please reduce the regulation, taxes and government interference so we can compete globally. We hope the new administration makes good on its promises and, if so, it will increase our business expansion, hiring and investments.
But, not everyone is happy...
The recent devaluation of the peso will make our products much less competitive in Mexico and much of Latin America. We could see a double-digit decrease in exports to this region. Tight labor in Texas continues to make staffing second and third shifts problematic. We have had two 10-percent increases in wages the last 18 months in order to remain fully staffed. We have also had challenges in the quality of candidates as well.