Falling gas and oil prices may cause trickle effects throughout the Texas economy, reported the Federal Reserve Bank of Dallas in its December survey. Other challenges include a softening in the housing market and upward pressure on wages. Overall, however, the local economy, which includes parts of Louisiana and New Mexico, is growing and thriving.
In its chapter of the Beige Book, an anecdotal summary of economic conditions compiled every six weeks by the Federal Reserve, the Dallas Fed said the economy in its district grew at a “solid” pace since the last report.
Demand for oilfield services also continued to grow during the period, but energy sector firms expressed more caution about falling prices. According to the report, several energy sector contacts said they were revising budgets and spending plans for the upcoming year.
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