Dallas Fed’s Manufacturing Outlook has now contracted for 22 consecutive months (the 2008/9 crisis collapse was 24 straight months) with a -1.5 print in October (missing expectations of +2). Production declined, Capacity Utilization tumbled, New Orders and Average Workweek contracted, and wages dropped (while prices paid rose).
“Not” a recession…
Chart: Bloomberg
As The Dallas Fed warns,
Job losses from the oil sector are having a negative effect on tax revenues in Texas.
This puts pressure on government spending at the state and local level.
High-paying manufacturing jobs are being replaced with lower-paying
minimum wage service sector jobs.
Unfunded pension liabilities of the
city of Houston will further depress economic expansion as city budgets
are affected.
Notably, expectations for business activity six months ahead dropped to 5 month lows.
But it’s probably nothing.
via http://ift.tt/2f0R2lR Tyler Durden