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Texas firms open to AI as tariff work-around strategy
Firms are adopting AI and automation to offset rising tariff costs and shrinking margins, aiming to boost productivity and reduce labor needs amid economic challenges.
Texas economic activity expands modestly; labor market remains healthy
Texas economic activity expanded at a modest pace in April. While the manufacturing sector rebounded, the service sector slowed. Texas employment growth was moderate in the first quarter, slightly above the state’s roughly 2 percent long-run trend, and the unemployment rate held steady.
Journal Article
Shoring up water supply, curbing demand key to Texas’ future growth
Funding for water infrastructure improvements has emerged as a priority for the Legislature during its 2025 legislative session. Absent changes to policy, Texans could face significant water shortages during droughts and constraints on future growth and economic development.
Journal Article
Mexican residents favor local retailers over cross-border shopping in Texas
Despite a relatively stable peso-dollar exchange rate that would normally favor shopping in the U.S., Mexican consumers increasingly stay closer to home.
Journal Article
New Mexico draws on energy, trade to spur economy
While New Mexico continues to navigate economic and demographic challenges, increased revenues from oil and gas production provide opportunities to invest in education, infrastructure and other improvements to boost long-term growth.
Journal Article
Texas high tech shakes off post-pandemic slump, readies new growth path
Texas is poised to lead in new advanced technologies, notably artificial intelligence (AI) and semiconductor manufacturing.
Texas economic sentiment upbeat amid price pressures, uncertainty
Texas companies reported rising service sector revenue and a resumption of production growth in the manufacturing sector after weakness in 2023 and much of 2024, according to the Dallas Fed’s Texas Business Outlook Surveys (TBOS).
Texas expansion moderates; labor market, price expectations normalize
The housing market slowed, with sales down and inventories rising. Data reflecting strain among small businesses and low- and moderate-income households appeared mixed. Some data point to rising stress, while others suggest resilience.
Journal Article
Texas job growth expected to pick up following flat 2025
Texas economic output grew in 2025 but did so with near-zero job growth. The last time that happened was in 2002–03, when the state emerged from the dot-com bust into an extended jobless recovery.