Texas economy

The Texas economy expanded in March. Employment and earnings both rose. The April Texas Business Outlook Surveys showed a notable decline in company outlooks.

Texas service sector activity grew slightly in April, according to business executives responding to the Texas Service Sector Outlook Survey. The revenue index, a key measure of state service sector conditions, rose three points to 3.8, indicating a small increase in revenue.

Texas factory activity continued to rise in April. The production index, a key measure of state manufacturing conditions, was largely unchanged. Other measures of manufacturing activity signaled contraction, however.

The cyclicality of industries and their behavior provide early indications of economic turning points in Texas and the U.S. and provide a timelier view than other data that are widely used to confirm downturns and expansions.

The Texas Employment Forecast indicates jobs will increase 1.5 percent in 2025, with an 80 percent confidence band of 0.8 to 2.2 percent.

Steve Estes, the Texas A&M AgriLife Extension Service agent for Taylor County, offers his perspective on how ranchers, farmers and city dwellers can collectively work to ensure that the area makes the best decisions regarding precious water resources

Funding for water infrastructure improvements has emerged as a priority for the Legislature during its 2025 legislative session. Absent changes to policy, Texans could face significant water shortages during droughts and constraints on future growth and economic development.

The Texas economy expanded in February. Employment growth was solid, and sales tax revenue increased broadly.