


For the 10th month in a row, The Dallas Fed Manufacturing Outlook survey printed negative (signaling contraction) with the February print dropping to -13.5 from -8.4 (-9.3 exp).
Source: Bloomberg
The production index, a key measure of state manufacturing conditions, edged down from 0.2 to -2.8, a reading suggestive of a modest contraction in output.
Under the hood, the new orders index was negative for a ninth month in a row and moved down nine points to -13.2. The growth rate of orders index fell from -12.3 to -16.9. The capacity utilization index returned to negative territory after two positive readings, falling 10 points to -4.1, while the shipments index was largely unchanged at -5.0.
Perceptions of broader business conditions worsened in February as pessimism increased, as evidenced by comments from survey respondents:
Is this what Powell wants to hear?