Texas economy

While the key measures suggest that conditions that hamper a bank’s resilience to economic adversity are marginally higher than before the pandemic in 2019, we expect further declines in bank stress levels as interest rates normalize.

Texas service sector activity increased in February, according to business executives responding to the Texas Service Sector Outlook Survey.

Texas factory activity fell in February after rising notably in January, according to business executives responding to the Texas Manufacturing Outlook Survey.

Pia Orrenius, vice president and senior economist, released the Dallas Fed's forecast for Texas employment growth and shared more details on the factors likely to influence Texas in 2025 at the annual Texas Economic Outlook event.

The Texas Employment Forecast indicates jobs will increase 1.6 percent in 2025, with an 80 percent confidence band of 0.8 to 2.4 percent.

Texas is undergoing a boom in technology and energy-related construction that follows a pandemic-era warehouse and logistics building surge.

Texas companies reported rising service sector revenue and a resumption of production growth in the manufacturing sector after weakness in 2023 and much of 2024, according to the Dallas Fed’s Texas Business Outlook Surveys (TBOS).

The Texas economy expanded in December. Employment growth was robust, and the unemployment rate was flat.