“Texas Recovery is at Hand, but Clouds Remain”

“Texas Recovery is at Hand, but Clouds Remain”

The drag from the U.S. and global recessions on the Texas economy appears to have abated.  Most of the state’s key economic indicators have posted some improvement during recent months, even though most still remain well into negative territory on a year-to-year basis.  We believe the recession ended around the middle of 2009 nationwide, and the Lone Star State appears to have turned the corner at about the same time.  There are still plenty of storm clouds on the horizon, however.  While the national economy saw exceptionally strong real GDP growth during the fourth quarter, much of that growth was due to a swing in business inventories, which is hard to isolate at the state level.  That said, Texas is clearly seeing some short-term benefit from the massive fiscal and monetary stimulus put in place this past year.  The real test, for both the nation and Texas, will be what happens once this stimulus winds down around the middle of the year?

Jim Wilkie, CCIM

Wells Fargo SBA Lending

(281) 660-0777 cell

(281) 840-6900 e-fax

Jim.Wilkie@WellsFargo.com

MAC T5008-012

nancy@callnancyfurst.com