Dallas Fed manufacturing index -8.3 vs 14.1 last month

• Prior month 14.1
• Dow’s Fed February manufacturing index -8.3 versus 14.1 last month
• Output index -9.1 versus 12.2 in January

The index is at its lowest level since September 2024 when the index came in at -9.0.

Details:

• Manufacturing Activity Decline:

  • New orders index fell 11 points to -3.5.
  • Capacity utilization index dropped 14 points to -8.7.
  • Shipments index remained positive but declined to 5.6.

• Business Conditions Worsen:

  • General business activity index plunged 22 points to -8.3.
  • Company outlook index fell 24 points to -5.2.
  • Outlook uncertainty index surged to 29.2, a seven-month high.

• Labor Market Weakness:

  • Employment index near zero (12% hiring, 12% layoffs).
  • Hours worked index fell to -14.2, lowest since mid-2020.

• Cost & Wage Pressures:

  • Raw materials prices index rose 18 points to 35.0, a multiyear high.
  • Finished goods prices index inched up to 7.8.
  • Wages and benefits index eased to 16.7 from 20.9.

• Future Outlook:

  • Future production index declined to 28.3 from 44.8.
  • Future general business activity index dropped to 7.7 from 35.5.
  • Other future manufacturing activity indexes remained positive but declined.

US stocks remain under pressure with the:

• S&P index down -22.87 points or -0.38% at 5990.25.
• NASDAQ index is down -196 points or -1.0% at 19326.
• Dow is still marginally higher by 8.67 points or 0.02%.

The small-cap Russell 2000 is down -18.77 points or -0.86% at 2176.45.

Yields have moved to session lows on the weakness, and are now down on the day:

• 2 year yield 4.191%, unchanged
• 5-year yield 4.249%, -0.9 basis points
• 10 year yield 4.409%, -1.0 basis points
• 30 year yield 4.660%, -0.8 basis points

This article was written by Greg Michalowski at www.forexlive.com.