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Below is a chart and brief excerpt from today’s Market Situation Report written by Tier 1 Alpha. If you’re interested in learning more about the Hedgeye-Tier 1 Alpha partnership, there’s more information here. |
Some of the regional Fed survey data we receive are among the most interesting datasets. It involves individuals actively involved in industry, providing a qualitative perspective from those with practical experience. It’s actual boots-on-the-ground data. This aspect makes it a valuable study of business confidence.
In August, Texas factory activity contracted, the production index fell by six points to -11.2, the lowest level since May 2020. The new orders index remained negative at -15.8, slightly higher than in July. The capacity utilization index dropped to -3.7, and the shipments index fell by 14 points to -15.8. The capital expenditures index hit a three-year low of -8.6.
Perceptions of business conditions worsened. The general business activity index inched up to -17.2, while the company outlook index stayed at -18.4. Outlook uncertainty rose, with the index down eight points to its lowest in over two years. Labor metrics indicated slower growth and shorter workweeks. The employment index declined six points to 4.3, with 18 percent noting net hiring and 14 percent net layoffs. The hours worked index slid to -3.8.
We are going to include some of the commentary from survey respondents. And warning: you may need to binge-watch Tony Robbins after these to refocus your mind to a more positive outlook.
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Learn more about the Market Situation Report written by Tier 1 Alpha. |
