It's Still Ugly In Texas

By Akin Oyedele at Business Insider

Manufacturing activity in Texas remained in contraction this month, as the headline index from the Dallas Federal Reserve printed at -31.8.

1602c1-hi

Economists had estimated that the reading improved to -30 from -34.6 in January. The index was negative throughout 2015.

The company-outlook index remained negative for a third straight month, though it improved a little.

But the employment index fell 7 points to -11.1, the lowest level since November 2009. A greater percentage of firms reported net layoffs (more layoffs versus hires) than those who reported net hiring.

Last month, the reading dropped to a six-year low, as cheaper oil continued to hurt businesses with exposure to the sector. All of the major sub-indexes worsened.

A survey respondent in chemical manufacturing said, "Don't know if it is the weather, uncertainty created by the presidential election, or just a slowdown in the world economy, butthings are definitely slowing down."

"Wages are going up, the cost of labor is going up and qualified people willing to work are hard to find," said another in fabricated metal product manufacturing.

Source: It's Still Ugly in Texas - Business Insider

David Stockman's Contra Corner is the only place where mainstream delusions and cant about the Warfare State, the Bailout State, Bubble Finance and Beltway Banditry are ripped, refuted and rebuked. Subscribe now to receive David Stockman’s latest posts by email each day as well as his model portfolio, Lee Adler’s Daily Data Dive and David’s personally curated insights and analysis from leading contrarian thinkers.

Get Access