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Dallas Fed manufacturing index falls more than expected
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The Dallas Federal Reserve's manufacturing index came in at -6.2 for August.
Economists had estimated that the index of activity worsened to -3.9 from -1.3 in July, according to Bloomberg. It has not turned positive since December 2014, before a slowdown choked the manufacturing sector.
But factory output picked up in August; the production index rose to 4.5 after a near-zero print in July.
A rebound in new orders showed that demand improved, and the growth rate of orders index turned positive for the first time in two years.
"A good indication of business outlook is how many calls we get from truckers looking for freight business," said a respondent in primary metal manufacturing. "On one day we received four calls. It was probably more calls than orders we received for the day."
Last month's print was a notable improvement from the June index of -18.3, and better than most economists had expected.
In July, the employment index improved from a seven-year low, and the index of future general business activity rose for a second straight month.
Some business leaders told the Dallas Fed that they struggled to find qualified workers, including entry-level candidates that can do basic math.
"Department of Labor rules and regulations are slowing growth and reducing hiring due to increased management time spent on compliance and higher costs of labor," a survey respondent said in this month's report.
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