Thursday, May 28, 2015

So, what does a barrel of oil have to do with it .....?

I have heard a lot about the effects of the low pricing of a barrel of oil on industry.  Industry professionals have told me about how the reduced cost of oil has caused a cut back in energy production in our country, affecting the manufacture of equipment to explore for, acquire, and transport oil.



On today's NFPA economic forecast webinar, I detected some signs that this is true.  We are seeing an overall macroeconomic slowdown across industry in 2015.  It is not recessionary but the economy is reflecting slowing growth.  We are not exactly sure how much of the slower growth is due to cheaper oil but it must be having an effect.

I don't think we need to worry too much because the economist on the webinar did forecast a good 2016.  Most of the rest of our economy shows signs of strength and I am still hoping for a solid 2016.  

What are you hearing?