Dallas Fed Manufacturing Index drops to lowest level in more than two years at -5.1

"The general business activity index plummeted 23 points to -5.1, hitting its lowest level since mid-2016," the Federal Reserve Bank of Dallas said in its latest Texas Manufacturing Outlook Survey.

Key takeaways from the press release

• The production index, a key measure of state manufacturing conditions, inched down one point to 7.3.
• The capacity utilization index fell from 9.4 to 7.6, and the shipments index dipped to 6.1.
• Meanwhile, the new orders index moved up five points to 14.4, and the growth rate of new orders index edged up to 5.8.
• The employment index retreated five points to 11.0, a level still above average.
• Twenty-two percent of firms noted net hiring, compared with 11 percent noting net layoffs. The hours worked index held steady at 5.0.