Comerica Bank’s Texas Economic Activity Index ticked down in August, declining one point to a level of 98. August’s reading is 15 points, or 18 percent, above the index cyclical low of 83. Year-to-date the index has averaged 96, six points above the average for all of 2010.
“Strong growth in the Texas economy in the first half of 2011 moderated by late summer, but the state remains a bright spot in the somewhat patchy U.S. economy,” said Robert Dye, Chief Economist at Comerica Bank. “Crude oil prices back up to near $90 a barrel add stability to the state’s energy sector, and will fuel economic growth in the final quarter of 2011. The state will likely pass its pre-recession employment peak by early 2012 and continue to add jobs through next year. However, Texas, like all other states, will feel some drag from a euro-zone recession, but that is not expected to derail the state’s economic recovery.”