Dallas Fed Manufacturing Report Shows Improvement

Headline troubles eased in the Dallas Fed manufacturing sector where both the general activity index, at minus 1.3 in July vs minus 18.3 in June, and the production index, at plus 0.4 vs minus 7.0, show improvement. Details also show improvement but less so, with new orders still deeply in negative ground, at minus 8.0 vs June's minus 14.2, and unfilled orders at minus 4.6 vs minus 13.6. Shipments are in fractionally positive ground with employment still negative, at minus 2.6. Inventories are in contraction and delivery times are shortening, both indications of weakness. Price data do show some pressure, with input costs and wages & benefits both up but selling prices still down. Simply enough, low energy prices continue to hurt the oil patch.