2. US factory orders fell more than expected in December.

• The headline weakness, however, was driven by the volatile transportation sector. Excluding transportation, orders improved by 0.4% month over month.

– In level terms, factory orders excluding transportation have been stagnant over the past three years.

• Growth in core capital goods orders was revised upward.

3. The Dallas Fed Manufacturing Index turned positive for the first time since July.

• Production (further expansion):

• New orders (moderating expansion):

• Employment (expansion moderated):

• Price pressure (ticked down, but expectations rose):

4. The Chicago Fed National Activity Index returned to positive territory for the first time in nearly a year, suggesting that economic growth recovered to an above-trend pace.

• Our timely underlying growth remained well above potential growth.