The third federal reserve bank’s factory survey for June was weaker, a further sign that manufacturing growth is waning amid rising trade tensions.
The Dallas federal reserve bank’s survey of Texas manufacturing fell to a three-year low of 12.2 on Monday, as more businesses said things were getting worse.The same report also showed a further deterioration in the six-month outlook.The main indicator was well below the median forecast of -2 and below the forecasts of all economists surveyed by bloomberg.It was minus 5.3 in May.
Fed officials also downgraded their economic outlook last week, noting that the outlook was more uncertain.The manufacturing gloom in June followed other surveys showing a deterioration.The New York fed’s empire state index fell to a record low, the Philadelphia fed index fell to a four-month low and the institute for supply management’s national index fell in May to its lowest level since October 2016.
The Dallas report was mixed, with some indicators showing improvement.A measure of new orders is up slightly from a two-year low hit last month, while a measure of production is also higher.Both remain at levels that indicate expansion.Capital spending fell to its lowest level in more than two years.
The future general business activity index fell -2.7, the lowest level since January 2016, as more companies said they expected activity to worsen over the next six months.The survey was conducted June 11, solstice, and collected data from 116 manufacturers in Texas.