There are still weeds popping up in the green shoots garden. The July manufacturing data released by the Dallas Fed was the worst since July 2009.
JULY DALLAS FED MANUFACTURING ACTIVITY: -21.0% Vs. -2.5% Expected
Components
- Production 4.9 v -1.9 prior
- New orders -9.6 v -8.2 prior
- Raw materials prices paid 12.3 v 29.7 prior
- Wages and benefits 8.0 v 4.8 prior
- Employment 5.1 v 4.3 prior
While production was up it is the new orders that continues to be troublesome showing a further decline from the previous month. New orders is vital to keeping production and employment growing, or at least stable.
The raw materials prices gauge is somewhat indicative of deflation, not good. Wages and benefits showed a gain, however it all comes back to new orders for without an increase in future orders wages and benefits along with employment will suffer.
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