Positives And Negatives Balance In Dallas Fed Manufacturing Report

There's as many positives as negatives in the August manufacturing report from the Dallas Fed, which is a plus since negatives usually dominate this report. The production index rose more than 4 points to 4.5 while the new orders index jumped more than 13 points and is in positive ground at a modest but still respectable 5.3. Another positive is the future assessment of general activity, in positive ground for three months in a row and at 7.0 in August.

But there are negatives including the current assessment of general activity, falling nearly 4 points to minus 6.2 for the 20th straight negative result. Employment is at minus 5.0 and hours worked edged lower. Price data show pressure for inputs but continued declines for selling prices, all at the same time that wages & benefits continue to rise.

This along with the Kansas City Fed report have been depressed the past 2 years due to the drop in energy prices. But today's report, though no better than mixed, does show signs of improvement, in a reminder of last week's solid strength in the durable goods report.