Comerica: Texas Economy Healthy But Faces Stiff Headwinds

Comerica Bank's latest Texas Economic Activity Index finds that the third quarter ended with an uptick in growth for the state after a weak summer.

Comerica chief economist Robert Dye says the pickup in September after a flat July and August is similar to what Texas saw in the middle of 2010.

“My sense is that Texas continues to generate jobs. We have oil prices still well in a favorable range for the state. Drilling activity remains high. Sort of a mixed bag with manufacturing, but I think overall trends are still going in the right direction.”

Dye says Texas is facing headwinds from slower growth elsewhere in the U.S., as well as the prospect of a steep recession in Europe.

“We have enough signs of domestic strength that I think we’re going to skirt a recession here in 2012, but we’re going to have to watch very closely and make sure these downside risks don’t accumulate.”

Comerica’s Texas Economic Activity Index weighs eight seasonally adjusted indicators. They reflect activity in manufacturing, travel and trade, as well as job growth and consumer spending.

Bio photo of Andrew Schneider

Andrew Schneider

Business Reporter

Andrew Schneider joined KUHF in January 2011, after more than a decade as a print reporter for The Kiplinger Letter...