October 26, 2012 – Growth in the Texas (Aaa / 8827223M1) economy picked up in the past six weeks. Job growth strengthened to a 3.1 percent annual rate in September, and the unemployment rate ticked down to 6.8 percent from 7.1 in August. Construction and housing indicators suggest that real estate activity remained strong in September. The energy sector continues to be robust despite recent declines in the rig count, and exports ticked up in August. Political and fiscal uncertainties persist and pose the most significant challenges to stronger growth in the fourth quarter. An accelerating pace of recovery in construction and housing is a key source of upward momentum for growth in the fourth quarter. The political uncertainty and concerns about the “fiscal cliff” present significant headwinds to stronger growth in the near term.
Link to Article: http://www.dallasfed.org/research/update/reg/2012/1207.cfm