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.

The U.S. PMI is expected to rise above 50 on Thursday, marking an improvement after being below 50 (indicating contraction) since November 2022.

Today's highlight is the Dallas manufacturing survey, underscoring Texas's significance due to manufacturing comprising 11.2% of the state's GDP, with the average manufacturing job paying over $95K and nearly a million jobs in the sector. Texas has been the leading export state in the U.S. for two decades. Could we witness a rebound similar to the one observed in the NY survey? Dallas Fed manufacturing has been in decline since April 2022!

Can Manufacturing Bounce Back From January Lows? - msr

As we anticipate the February data, the Dallas Fed's general business activity index for Texas manufacturing dropped 17 points to -27.4 in January 2024, reaching an eight-month low and indicating a deeper contraction. The production index, a critical indicator of state manufacturing conditions, fell 17 points to -15.4, its lowest since mid-2020. The new orders index decreased slightly from -10.1 to -12.5 in January, while the growth rate of orders index, though still negative, improved eight points to -14.4. The capacity utilization index hit a multiyear low of -14.9, and the shipments index declined 11 points to -16.6.

Learn more about the Market Situation Report written by Tier 1 Alpha.

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Can Manufacturing Bounce Back From January Lows? - large RC Banner 2 15 2024  1

Can Manufacturing Bounce Back From January Lows? - large MTCS 2 21 2024 Banner

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