What sausage sales tell us about the economy: Dallas Fed
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The Federal Reserve Bank of Dallas released its monthly Texas Manufacturing Outlook this week, which gauges the sector based on surveys of producers — and many of those manufacturers issued warnings in their feedback.
The report said the data shows weakness in the state's manufacturing, but it also included comments from respondents that were edited for publishing – and several sounded the alarm about the condition of the economy.
One food manufacturer alerted the Dallas Fed to a sign that consumers are struggling.
A meat counter showing a variety of sausage at a Fred Meyer grocery store in Palmer, Alaska. One food manufacturer warned the Dallas Fed that consumers are buying more dinner sausage, which is typically a sign of «economic weakness.» (Michael Siluk/UCG/Universal Images Group via Getty Images / Getty Images)
«As the economy weakens, we are seeing modest growth in our category of dinner sausage,» the comment reads. «This category tends to grow when the economy weakens, as sausage is a good protein substitute for higher-priced proteins and can ‘stretch’ consumers’ food budgets.»
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Another food manufacturer wrote, «Agriculture is hurting. No farm bill, weather and falling prices for our commodities while input costs increase are putting a big squeeze on our industry.»
A third commented, simply, «We are preparing for the recession.»
Machinery manufacturers also issued dire reports, with one writing, «The slowdown is settling in with business activity at a very low level.» Another commented, «Things are
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