US: Dallas Fed Manufacturing Index drops to 2 in April, beats expectation of -2.6

According to the Texas Manufacturing Outlook Survey conducted by the Federal Reserve Bank of Dallas, the manufacturing sector lost momentum in April with the general business activity index dropping to 2 from 6.9 (revised from 8.3) in March. Nevertheless, this reading came in above the market expectation of -2.6. The US Dollar Index didn't react to the data and was last seen flat on the day at 98.06.

Key takeaways from the press release

• The production index, a key measure of state manufacturing conditions, ticked up two points to 12.4, indicating output growth accelerated slightly from March.
• The company outlook index climbed two points to 6.3.
• The employment index fell eight points to 4.6, its lowest reading since the end of 2016. 
• The index of future general business activity remained at its March reading of 18.4, while the index of future company outlook edged up from 18.4 to 20.9.