The Texas economy remains in a broad-based expansion. Job growth in the first quarter was a robust 3.5%, maintaining the solid gains seen in fourth quarter 2017. The state’s energy sector continues to boom, and areas of the state tied to oil and gas are growing at their strongest pace since 2014. The Dallas Fed’s Texas Business Outlook Surveys suggest sustained growth in the state’s manufacturing and service sectors through April. With this strength, the Dallas Fed projects growth of 3.4% for the year.
Texas job growth moderated in March to a 2.3% annualized rate. However, growth in February was revised up by 1% to 4.2%. Along with January’s healthy pace, this brought overall growth in the first quarter to 3.5%.