Dallas Fed Manufacturing Sample Flat

Production indications accelerated in January for the Dallas Fed's manufacturing sample but not orders or employment, in results reflected in the Dallas Fed's general activity index which, at plus 1.0, did beat expectations and December's multi-year low of minus 5.1 but is nevertheless flat.

The new orders index edged down to 11.6 in January and the growth rate of new orders index fell from December's 5.8 to 1.2. The employment index retreated four points to 6.6, a two-year low.

The production index, which the Dallas Fed highlights in its report, rose from 7.3 to 14.5 indicating monthly acceleration in January's output. The capacity utilization index rose seven points to 14.8 and the shipments index rose five points to 11.4.

Prices reflect the mixed results with traction holding steady for selling prices but easing for input costs. These results are in line with the regional and private indications on January's factory activity, that demand is slowing and the likely result of soft global demand and, for the Dallas sample in particular, the late-year collapse in oil prices.