According to Jinshi Data, U.S. manufacturing activity fell again in August, although the decline was smaller than the previous month, but production increased slightly. Data showed that the Dallas Fed Business Activity Index climbed to negative 9.7 in August from negative 17.5 in July, the highest level since January 2023.
The index has been below zero, indicating industrial contraction, since April 2022. The survey showed that production indicators rose slightly, new orders climbed, shipments were almost flat, and capacity utilization increased but remained in contraction.
The survey also showed a sharp drop in uncertainty compared with the previous month. However, mild upward pressure on prices and wages continued in August, which may keep policymakers on their toes before Federal Reserve Chairman Jerome Powell hinted last week that a rate cut may be possible.
