After a Rough Start, Outlook for Texas Economy Looks Brighter in Second Half, Says Dallas Fed Economist
For immediate release: August 4, 2016
Video: Dallas Fed business economist Jesus Cañas provides an update on the Texas economy, including employment data, exports and the energy sector.
DALLAS—Revised employment data show Texas weathered a more challenging first quarter than previously thought, but there are signs of improvement, said Federal Reserve Bank of Dallas economist Jesus Cañas in the latest Texas Economic Update video.
“Actual employment data for first quarter tell us that the Texas economy didn’t grow as fast as we had anticipated,” Cañas said. “The combination of slow growth in the U.S. economy during the first quarter and oil prices around the low-$30s heavily impacted the Texas economy.”
Growth picked up in the second quarter, and higher oil prices have eased some of the pain in the oil patch, contributing to a more optimistic outlook for the second half of the year, Cañas said.
While stronger growth is anticipated, the possibility of lower energy prices remains a risk factor, as does the high value of the dollar, which makes Texas exports more expensive.
“We export a lot of what we manufacture,” Cañas said. “So if the price of our products is high, the demand for our products drops, forcing some Texas manufacturing companies to cut payrolls in order to compensate.”
More data on the Texas economy can be found in the most recent Regional Economic Update. Cañas is a business economist at the Dallas Fed.
Federal Reserve Bank of Dallas
Phone: (214) 922-5288