By John Galt
August 29, 2011 – 10:45 ET
The outlook from the Dallas Federal Reserve Bank report on manufacturing has gone from bad to worse in the August survey. The general business activity index remained negative for the fourth month in a row and fell from –2 to –11.4 and indications within the survey tend to signal further declines in the immediate future. The index overall has reached the flat line which in and of itself is a bad indicator for the nation:
This is an almost perfect duplication of last year’s dive in activity except that this time there is no guarantee of a bailout from the Federal Reserve at this time, only lip service. To make matters worse, new orders are now declining at a faster pace also:
While the future outlook for new orders is still relatively high, the current outlook is declining rapidly, and the outlook for the growth rate of new orders reflects this also:
Now that it has dipped into negative territory, the future expansion of employment and manufacturing activity appears to have reached another peak in spring of 2011 and could well be on its way to recession territory. The charts above are from the Dallas Fed home page and to see the rest of the report, click on the link below to review them:
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