Growth in the Texas economy picked up at year-end 2019 and accelerated into January, according to the Texas Business Outlook Surveys (TBOS). Job gains in December were led by service sector growth, adjusted Bureau of Labor Statistics payroll employment data showed. Separately, TBOS respondents reported a return to mild expansion in manufacturing at the start of 2020.
Dallas Fed contacts indicate that the rig count is likely near a soft bottom, although further declines are possible. The Dallas Fed Energy Survey shows that Eleventh District energy activity is still contracting slightly overall, though there was a rebound into positive territory among exploration and production firms in the fourth quarter.