Dallas Fed Dead-Cat-Bounce Dies - Economy Contracts For 20th Month In A Row

Tyler Durden's picture

Having jumped miraculously from -18 to -1.3 in July, August's Dallas Fed plunged back to -6.2 - contracting for the 20th month in a row. The worse than expected headline data came despite a rise in new orders as the number of employees, average workweek, and capex all plunged into contraction. Hope also tumbled from 18.4 to 7.0 with inventories and new orders expected to slow.

Despite the surge in oil prices, the Dallas economy continues to contract...

 

Charts: Bloomberg

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NoDebt's picture

The green pipes even during the recent oil boom don't look that impressive.  That looks like a chart of Caterpillar's earnings.

Rainman's picture

Who woulda thunk that finally getting to zero would be declared victory ?

Kaiser Sousa's picture

this sounds like bad news right????

but....

http://www.marketwatch.com/investing/index/djia

 

uh, huh...

FreeShitter's picture

Bad news is soooooooo 2008 bro.

BrownCoat's picture

Bad news for oil is supposed to be good news for the whole economy, because cheap energy widens profit margins. However, the current socialist dominated economy (Obamacare and other regulations) will crush any economic growth.

FreeShitter's picture

yes and it was done by design to wipe out whats left of the middle class...

Wildmann's picture

Gobama Gobama Go! Third term should fix it. Write your congressman and beg to allow Obama to stay in office. Roger over. Roger out.

Eagle40's picture

Oil is only up because of the US Treasury buying stocks through the ESF. Real economics shows demand for oil crashing which means that supplies will continue to increase and prices plummeting while companies reduce production and lay more people off.

Iam_Silverman's picture

"Real economics shows demand for oil crashing which means that supplies will continue to increase and prices plummeting while companies reduce production and lay more people off. "

So, I see that the only real answer to this mess is to provide expanding employment through the construction of new storage facilities!

Win-Win!

ejmoosa's picture

Dallas numbers support the negative growth in profits from corporations, which hav been declining for two years.

Employment, which is a lagging indicator, not a leading indicator, will, despite the FRB actions, begin showing greater signs of weakness, until the bottom falls out.

Once again corporations will begin their annual planning for 2017, and with fewer profits, the raises will be less (excluding the board and CEO) and the hiring and investment will be curtailed.

RawPawg's picture

Closing into the "Green"

right?

 

GunnerySgtHartman's picture

Oh yeah, we are DEFINITELY going to see a ratehike in September.

 

 

 

/s

knotjammin2's picture

Too funny.  And pigs will be flying and hell will have frozen over!!

jamesmmu's picture

Traders are now betting on Friday's job report. Screw them all!

Chippewa Partners's picture

With all the construction and cranes in downtown/uptown Dallas one would think all the hipster apartments are full! What do they all do besides go to school!