As business leaders across the nation continue to run lean and unsure in a challenging economy, Texas-based companies may find hope in the most recent Texas Economic Update from SigmaBleyzer. According to the firm:
The Texas economy continued to expand in August, albeit at a slower pace. Businesses still appear reluctant to expand production on heightened policy uncertainties (including lingering expiration of the Bush tax cuts and the federal ban on offshore oil drilling) and worries over the U.S. and global economic outlook.
On a positive note, both Texas Leading and Business Cycle Indices indicate that the economic recovery is gaining traction. In particular, service industries saw a moderate improvement in demand thanks to stronger retail trade and more stable air travel and freight demand. However, falling home sales and weak private consumption will put pressure on economic growth in the second half of 2010 as manufacturing driven inventory restocking loses momentum.
- The unemployment rate in Texas remained at 8.2% in July; well below the U.S. national average for the 43rd consecutive month.
- The private sector in Texas created 87,000 new jobs over the last twelve months (up by one percent); nationwide, private sector employment remained unchanged.
- Texas exports continue to recover faster compared to other large states and the country as a whole.
- The Houston Purchasing Managers Index stood unchanged in August on heightened economic and regulatory uncertainty.
- National, and Texas, home sales continued to decline in July due to the expiration of the homebuyer tax credit.
- The Federal Reserve pledged to maintain an accommodative monetary policy. This should add a boost to the nascent economic recovery.
Houston-based SigmaBleyzer is a private equity firm focused on small to mid-market distressed and turnaround investment opportunities, primarily in the consumer sector. You may visit their site for a further assortment of updated Texas economic research.