Everything's Bigger in Texas - Even the Decline in Manufacturing
The U.S. economy seems to be hanging in there, showing signs that it will avoid a serious downturn.
But certain pockets of America are clearly hurting.
Today we got the latest installment of the Dallas Fed Manufacturing Activity Index, one of several surveys that gauge the health of the manufacturing sector in a given region. Anything below 0 is considered contractionary, which means the reading of -31.8 published by the Dallas Fed this morning, puts Texan manufacturing deep in contraction territory.
The chart below shows the Lone Star state in white vs. similar surveys conducted by Fed banks in Philadelphia, New York, Richmond and Kansas City. While this is just one way of looking at the economy, and other areas are hurting as well, it's clear that the oil crash is having an impact.