In an understandable slowing from unusual acceleration, the Dallas Fed's general activity index slipped to 15.0 in June vs 17.2 in May. New orders have slowed to 9.6 from May's 18.1 with unfilled orders moving to 1.3 from 8.1. The report underscores production as an important reading and here the story is the same, slowing to 12.3 from 23.3 in May.
Price data are steady with inputs continuing to show pressure, at 15.6, but selling prices lagging significantly, at 3.6. Employment data show continued pressure for wages & benefits, at 21.1 vs 24.3, with hiring positive at a 1.3 point gain to 9.6.
Though the general activity index is at its lowest level since November last year, cooling in this report is welcome given the unsustainable rates of growth in prior months. But with the price of oil on a severe downswing right now and testing the $40 area, future acceleration for this report may be limited.