From the Dallas Business Journal
The Texas economy may be set to bounce back after weathering the worst of the plunge in oil prices, according to a Federal Reserve Bank of Dallas economist.
The pace of new jobs created in the state is outpacing the rest of the nation, increasing by 3.2 percent in July and 2.6 percent in August. New hiring is expected to increase by 2.3 percent in the back half of the year. Future outlook data on Texas manufacturing nearly quadrupled in September, in a sign production is expected to expand. It would be the first time in nearly two years that Texas manufacturing would be expanding on a consistent basis.
“We’ve been encouraged by this because it suggests that the worst of the energy crisis may be over,” Dallas Fed economist Pia Orrenius said in a video posted Tuesday.
Orrenius said “most remarkably” the Dallas Fed saw an increase in oil and gas production jobs in August, which they hadn’t seen since 2014. Rig counts are up from their low in May to the low 200s as oil prices have stabilized in the low $40 per barrel range.
“We are still vulnerable to low oil prices,” Orrenius said. “We are also watching the strength of the dollar because a very high dollar hurts our exports and hurts our manufacturers.”
