With all eyes firmly focused on housing data that is adjusted beyond belief and a confidence print that merely met expectations, both the Richmond and Dallas Fed just missed expectations with some very concerning data under the hood. In no particular order - Dallas Fed outlook plunged from 14.5 to 11.8; Dallas employees plunged from 13.9 to 2.8 (and the workweek collapsed); New Orders and production also slumped as any post-weather bounce is buggered. For Richmond, new order volume plunged from 10 to 3 and capacity utilization dropped back below 0; and the outlook for shipments also slid to 3 month lows with employees expected to drop. In short - a total disaster...
While both headlines missed...
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The real disaster is under the covers...
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So major declines in Production, Capacity Utilization, New Orders, Growth Rate of Orders, Unfilled Orders, Delivery Time, Inventories, Employment, Wages and benefits, Employment and Hours Worked. The offset: a surge in Prices Paid for Raw Materials - more margin pressure...