Following last month's plunge in the Dallas Fed Manufacturing data (which was its biggest miss in 14 months and lowest print in 10 months), today's -1.6 print was the biggest jump in 7 months. From last month's -13.2, against an expectation of -7 this month, the -1.6 'beat' was very 'impressive' though obviously still negative. Critically though, once again, much of the rise in the index is predicated on the hope-section of the survey as while current activity indices such as production, new orders, and growth rates fell (and inventories rose), their corresponding future expectation indices all rose (even though expectations of the general activity index were mixed). Notably, the Prices Paid index jumped the most in 19 months. Once again it appears that good is bad, bad is better, but terrible is awesome; as the market's entirely lost discounting mechanism has no idea what to do with this flashing red headline.
Dallas Fed beat...
[3]
on hope alone...
[4]
helped by the biggest jump in Prices Paid in 19 months...
[5]
Chart: Bloomberg