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Posted on 01/26/2015 10:14:39 AM PST by blam
Myles Udland
January 26, 2015
The crash in oil prices is weighing on Texas' economy.
The January Texas manufacturing survey from the Dallas Fed was a huge miss, with the general business activity reading coming in at -4.4.
Expectations were for the composite index to come in at 3.0, down from 4.1 in December. Factory activity in the region was flat in January.
The big takeaway, however, is that as with last month, numerous business executives expressed concerns over how the crash in crude oil prices would affect results.
One executive in the fabricated metal manufacturing sector said "multiple oil-related customers have sent out letters to all suppliers saying they expect 25 percent price reductions."
Another executive in this same sector said: "The tremendous drop in oil price is just starting to trickle its way through our customer base. We deal with the majors, and they have not signaled significant reductions in maintenance spending yet. If low oil prices continue, we would expect a significant drop-off in our business."
(snip)
(Excerpt) Read more at businessinsider.com ...
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