- Mike Segar/Reuters
The latest reading on Texas’ manufacturing from the Federal Reserve Bank of Dallas came in lower than expected.
The reading was -1.5 for the month of October, lower than economists’ projections of 2.0. Last month the index came in at -3.7.
The index has not been positive since December 2014, mostly due to the troubles in the energy industry after the crash of oil prices.
“Perceptions of broader business conditions remained mixed,” said the release from the Dallas Fed. “The general business activity index has been negative for nearly two years, although it continued to push closer to positive territory in October, coming in at -1.5.”
The composition of the labor market, as oil workers are laid off, is also concerning to Texas manufacturers and the state government.
“Job losses from the oil sector are having a negative effect on tax revenues in Texas,” said the release. “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.”