Dallas Fed manufacturing index -8.3 vs 14.1 last month

February 24, 2025 at 03:33PM

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.