But
don’t
take
my
word
for
it,
let’s
look
at
what
the
data’s
telling
us.
Every
month,
the
Dallas,
Kansas
City,
New
York,
and
Philadelphia
Feds
ask
manufacturers
in
their
districts
about
the
state
of
activity.
The
questionnaires
ask
those
companies
about
things
like
new
orders,
lead
times,
employment,
and
production.
It
asks
whether
the
costs
are
rising,
falling,
or
unchanged.
But
we
must
focus
on
“prices
received
for
goods.”
The
number
indicates
what
customers
pay
manufacturers
for
their
finished
product.
It’s
akin
to
CPI.
So,
the
direction
of
prices
received
is
an
indicator
of
whether
inflation
is
rising
or
falling.