Economic activity in the New Orleans area grew modestly over the past six weeks, according to the Fed’s latest assessment of regional economies. Labor markets improved slightly, but wage pressures persisted. Retail sales were healthy while auto sales were strong. Leisure travel was robust and business travel grew.
The boom in oil production that over the last decade made the U.S. the world’s largest producer is waning, suggesting the era of shale growth is nearing its peak. Frackers are hitting fewer big gushers in the Permian Basin, the U.S.’s busiest oil patch, the latest sign they have drained their catalog of good wells. Shale companies’ biggest and best wells are producing less oil. The Wall Street Journal reported last year companies would exhaust their best inventory in a handful of years if they resumed the breakneck drilling pace of pre-pandemic times.
Futures are up after stocks ended mixed yesterday. The Dow Industrials fell 58, but the NASDAQ added 45 and the S&P 500 edged up 5.
