Dallas mfr’g falls well below zero

Following increases in the mfr’g indices of the NY and KC regions and the negative readings from Philly and Richmond, the July Dallas mfr’g index fell to -13.2 from +5.8 and is well below expectations of +2.0. Weakness from June was seen in production, new orders, backlogs, inventories, employment and cap ex with a slight increase in prices paid and received and a good jump in wages. The overall 6 month outlook fell to -7.3 from +1.3, the 1st time below zero in 10 months. Today’s figure will be followed by the Chicago area tomorrow and the national ISM Wednesday where expectations are for a slight increase from 49.7 to 50.2.