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Dallas Fed Mfg Keeps To Less Volatile But Firmly Negative Trend

US DATA
  • The Dallas Fed manufacturing index fared slightly worse than expected in September as it dipped to -18.0 (cons -14) from -17.2.
  • The index has kept to a tight range in recent months, between -17 and -23 since June, at still solidly contractionary levels but not signalling any further deterioration for a series that been negative since May 2022.
  • It compares with some volatile readings from the Empire and Philly Fed conflicting latest developments (Empire bouncing 21pts to +2, Philly Fed falling -26pts to -13.5), as well as a small increase for the preliminary manufacturing PMI from 47.9 to 48.9.
  • The level of the index offers the most negative of the regional Fed manufacturing indicators, although we are yet to see Richmond or Kansas for September, whilst Friday’s MNI Chicago PMI also awaits.

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