Comerica Bank’s Texas Economic Activity Index rose one point in January, to a level of 94. January’s reading is 22 points, or 31 percent, above the index cyclical low of 72. The January index level is up four points from the average of 90 for all of 2011.
“Momentum in the Texas economy increased in early 2012, after cooling at the end of 2011. Labor market conditions improved, the energy sector remained very active, and residential construction activity increased in January. I expect to see ongoing gains to our Texas Economic Activity Index through 2012, driven by continued strength in those three areas,” said Robert Dye, Chief Economist at Comerica Bank. “There are still significant risk factors to watch out for at the global, national and local levels, including a cooler global macroeconomic environment, expected cuts to defense spending and possible airline industry consolidation, but I expect the Texas economy to remain strong in 2012.”