Editor’s Note: This story by Miles Udland first appeared online on BusinessInsider.com. We reprint in part here.
Manufacturing activity in Texas collapsed in August.
And the fear is all about oil.
The latest manufacturing index from the Dallas Fed came in at -15.8, way below expectations.
Economists had expected the reading to come in at -3.8, slightly better than July’s -4.6 reading but still indicating a decline in activity in the region.
August’s worse-than-expected decline reflects both a deterioration in current business output and a depressed view about future activity.
Over the last 9 months, this report has been closely watched as markets look for signs of how the crash in oil prices is impacting businesses in Texas, the epicenter of the recent US oil boom.
Read more at BusinessInsider.com