Dallas Fed Manufacturing Sample Less Robust

Growth in the Dallas Fed's manufacturing sample is less robust this month, at 28.1 for the general activity index vs 30.9 in August. Production slowed 6.0 points to 23.3 with new orders down 9.2 points to 14.7 for their lowest reading in six month. Capacity utilization eased, delivery delays slowed as did hiring, all pointing to an easing in capacity stress.

Confidence in the outlook is also easing as it did in last week's PMI manufacturing survey. Price data, also like the PMI report, remain a concern with input costs and wage pressures remaining highly elevated and with traction in selling prices still notable.

Slowing in this report and the easing in capacity stress are positives given the risk that conditions in this region, benefiting from high energy prices, had been pointing to the risk of overheating. Manufacturing has really been the economy's strongest suit this year. Watch tomorrow for the Richmond Fed's manufacturing report where September slowing is the call.