Dallas Fed Manufacturing Report Index Falls

No where are the effects of the oil-patch rout more evident than in the Dallas Fed manufacturing report where the general activity index fell to minus 15.8 in August from July's already weak minus 4.6. New orders fell into deep contraction this month, down more than 13 points to minus 12.5 with employment, at minus 1.4, in contraction for a fourth straight month. Hours worked are at minus 6.3 while readings on the business outlook fell steeply though both remain in slightly positive ground. Less weak readings were posted by production, shipments and capacity utilization. But price readings are very weak, with raw materials at minus 8.0 and finished goods at minus 15.7. It really doesn't get any worse than this report which points to increasing drag from the energy sector.

Recent History Of This Indicator:
The Dallas Fed index has been coming out of deeply negative territory, at minus 4.6 in July from minus 7.0 in June and minus 20.8 in May. The Econoday consensus is calling for minus 2.5 in August. This report has been offering some of the most striking evidence of oil-patch trouble.