Following the negative readings in the mfr’g regions of NY, Philly and Richmond, and slightly positive Kansas City area, the Dallas Fed mfr’g figure was -11.4, 2.4 pts worse than expected and the 4th month in a row of declines. New Orders fell from 16 to 4.8, Production dropped from 10.8 to 1.1, Backlogs fell almost 17 pts to -8.6 and Employment was down to 5.4 from 12.1. Prices Paid fell while Prices Received was unchanged. In terms of timeliness and sensitivity to the August goings on, this survey is helpful as it covers data collected from Aug 16th to the 24th. While the Dallas survey is never a market focus because the data point is only 7 yrs old and thus lacks any history, the trend in mfr’g nationally is becoming obvious. The Chicago region reports next on Wednesday and all will be reconciled on Thursday with the release of the national ISM.
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