Regional economy maintains moderate rate of growth

Generally positive economic activity buoys employment throughout the area.

The strength of residential real estate and the Texas energy sector continued to pace moderate regional growth over the past six weeks, but mixed reports from most other industries belied underlying uncertainties about the economy, the Federal Reserve Bank of Dallas said Wednesday.

The generally positive economic activity buoyed employment throughout most of the Dallas Fed’s district, according to the bank’s Beige Book report, which provides a summary of regional business conditions every six weeks. The Dallas district covers Texas and parts of New Mexico and Louisiana.

Employment levels held steady or ticked up in most sectors, the report said, noting strength in accounting and legal services and shortages of truck drivers. Staffing firms, on the other hand, said demand “came to a sudden stop” as several clients delayed hiring until after the November election.

Residential home prices and sales both continued to rise during the period, the report said, while demand for commercial real estate continued to rebuild momentum. Meanwhile, the energy sector remained steady at its high levels of activity, despite a drop in rig counts and some concerns about lower, morevolatile prices for oil and gas.

Other sectors reported a range of results. Most construction-related producers, including cement, glass and lumber, reported solid demand. High-tech manufacturers said shipments and new orders declined, as weakness in computer sales spread to other products, such as printers.

The district’s retailers as a whole continued to outperform the rest of the country, but overall activity and outlooks for the rest of the year were lukewarm. Automobile sales were flat.

Credit standards loosened during the period, keeping loan pricing competitive, the report said. Financial firms noted that used-car loans dropped, while mortgage demand increased.