October 1, 2019
According to data from the Federal Reserve Bank of Dallas’ Texas’ economic news is good. The housing industry is experiencing higher sales and prices, labor markets are tight, unemployment remains low, and job gains continue positive. However, “the outlook among Texas firms has deteriorated, due to concerns about tariffs, trade policy uncertainty and slowing global growth,” Dallas Fed analysts said.
The unemployment rate of 3.4% is still at an historic low, though an uptick in initial jobless claims could represent a slight labor market cooling. Meanwhile, oil and gas drilling activity is flat to down. The Dallas Fed’s Texas Employment Forecast calls for a 2.3% job growth in 2019, which was adjusted lower, due to benchmark revisions to Q1 employment numbers.
In terms of exports, Texas exports to China experienced a “dramatic decline;” also down are exports to Mexico. The latter is due to Mexico’s weak GDP performance in the first half of 2019.
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