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Dallas Fed Mfg Index Least Negative Since Jan’23, Prices Paid Firm

US DATA
  • The Dallas Fed manufacturing survey improved by more than expected to -9.7 (cons -16.0) in August from -17.5, still firmly negative but its highest level since Jan 2023.
  • Sequential improvements were seen across the vast majority of components, including new orders (-4.2 after -12.8), shipments (0.8 after -16.3) and capacity utilization (-2.5 after -10.0).
  • Employment was a notable exception though, giving back a spike higher to 7.1 in July as it fell back to -0.7.
  • Price components meanwhile were within recent ranges except for current period prices paid, with the increase from 23.1 to 28.2 leaving it at its highest since Oct’22 and the highest for regional Fed surveys.
  • Note that single year pre-pandemic comparisons can be misleading: the index averaged 16.0 in 2019 but 43.5 in 2018.

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