Uh Oh: Even the Texas Economy Is Slowing Down

Each month, the regional branches of the Federal Reserve publish an index representing manufacturing and business activity within their regions. Taken together, they are a good proxy for the state of the overall economy, as they provide an earlier look at more comprehensive data than can be released by the feds for the nation as a whole. Recent reports from some Fed Banks have confirmed what we already knew; i.e. that the economy as a whole is suffering from slower growth. But, today, in what is a real surprise, the Dallas Fed released its report showing the economy in Texas experienced a sharp pull-back in July.