Texas economy

Texas factory activity picked up notably in July, according to business executives responding to the Texas Manufacturing Outlook Survey.

The Texas economy slowed in June. Employment declined, and the unemployment rate ticked down. The June Texas Business Outlook Surveys showed flat manufacturing activity and a mild contraction in the service sector.

The Texas Employment Forecast indicates jobs will increase 1.7 percent in 2025, with an 80 percent confidence band of 1.3 to 2.1 percent.

Firms are adopting AI and automation to offset rising tariff costs and shrinking margins, aiming to boost productivity and reduce labor needs amid economic challenges.

Production from OPEC+ member countries is increasing. That’s keeping downward pressure on oil prices, tempering the impact of recent attacks on Iran by Israel and the United States.

Texas service sector activity remained in contractionary territory in June, according to business executives responding to the Texas Service Sector Outlook Survey.

Texas factory activity was largely unchanged in June, according to business executives responding to the Texas Manufacturing Outlook Survey.

The Texas economy grew in May. Employment growth was robust, as was labor force growth. The May Texas Business Outlook Surveys showed a moderation in wages and benefits growth.