The Texas economy remains weak, but recent data and anecdotal reports suggest that activity is stabilizing at low levels across some sectors. Sentiment regarding future economic activity has also become somewhat more positive, but a turnaround is not expected in the near term.
First Quarter Sees Continued Sharp Declines—With few exceptions, nations reported continued declines in GDP in the first quarter. The GDPs of the U.K., the euro zone and Japan contracted at a faster rate than in the United States. Especially sharp was the nearly 9 percent contraction in Japan from first quarter 2008.
"Bank on Houston Effort Sees Big Returns as Residents Open Thousands of Accounts"— Bank on Houston, a multipronged public–private campaign launched in January, has already spurred thousands of Houston-area residents to open checking accounts and build money-management skills.
"Inaugural Money Week Houston Campaign Promotes Financial Education Across City"—More than 150 free public events were held throughout Greater Houston in April as part of the inaugural Money Week Houston program promoting financial education.
"Low-Income Housing Tax Credits in Texas: Achievements and Challenges" provides a program overview, a current market-condition analysis and an update on recent regulatory changes.
The newest addtion to the Everyday Economics series, International Trade examines the benefits of specialization and trade, using the economic principles of absolute and comparative advantage. It also discusses protectionism and worldwide efforts to open trade.
On June 29, 2009, the Federal Reserve conducted an auction of $150 billion in 28-day credit through its Term Auction Facility. The results of the auction can be found on the Board's website.
Declines in Texas factory activity moderated further in June, according to the business executives who responded to the Texas Manufacturing Outlook Survey. Indexes for production, capacity utilization, new orders and growth rate of orders improved slightly from their May readings, but they remained negative, suggesting continued weakness. For the most part, the changes reflect fewer companies seeing declines in these measures, not more firms reporting increases.
Conditions in financial markets have improved in recent months, but market functioning in many areas remains impaired and seems likely to be strained for some time. As a consequence, to promote financial stability and support the flow of credit to households and businesses, the Federal Reserve is extending a number of facilities through early 2010.
The trimmed mean PCE inflation rate for May was an annualized 1.3 percent. According to the BEA, the overall PCE inflation rate for May was 0.7 percent, annualized, while the inflation rate for PCE excluding food and energy was 1.1 percent.
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