The Dallas Fed Manufacturing Region Activity was negative for the 19th consecutive month but approached zero.

Things improving? Let’s take a look at some details to sort out the situation.

Dallas Fed 2016-07

Conditions Stabilizing?

Production actually went into the green, but barely. General business activity soared 17 points but still finished negative.

That’s it for the good news. And I suspect much of that good news is related to excessive heat and an increase in utility production.

New orders continue to crash. The growth rate in orders was lower for the 21st month.

Prices paid by manufacturers rose for the 4th month but prices received by manufacturers fell for the 19th month.

Wages and benefits rose for a whopping 80 months.

The report title was “Texas Manufacturing Activity Stabilizes“. Details suggest otherwise.

Mike “Mish” Shedlock