Austin News

Despite nationwide shutdowns, and a deadly winter storm, Texas continues to be one of the top-grossing state economies as the decade-long growth in companies and jobs continues.

January and February data from the Federal Reserve Bank of Dallas shows the economic growth for the manufacturing and service sector have continued to increase, with only a slight deviation during the winter storm in February, KXXV reported. 

"So if preliminary data for March, which also shows continuing growth in manufacturing and services," Jesus Canas, senior business economist, Dallas Federal Reserve Bank. ". We anticipate a good recovery this year in the state."

Gov. Greg Abbott said for nearly a decade, Texas has remained in the top 10 largest economies in the country, and the state only plans to further this trend. 

"TX has led the nation for the past 8 years in new economic development & corporate relocation," Gov. Abbott wrote in a tweet. "Even during the pandemic, we went from having the 10th largest economy in the world to the 9th largest economy. The TX model continues to attract more businesses & jobs for Texans."

While the winter storm in February brought a temporary halt to economic activity throughout the state, experts said the economic impact isn't as big as the one dealt by Hurricane Harvey, according to the Texas Standard. 

"While activity dropped sharply the week of the storm in February, it bounced back the following week. Thus, the negative impact on employment and business activity appears to have been mostly transitory," the report said, as reported by the Times Record News.

According to KXXV, economists were optimistic and predicted healthy growth for March and April, but and with recent announcements from Texas of numerous companies from all sectors relocating to the state, that optimism is well warranted.

In the second half of 2020, the manufacturing production index jumped to 19.9 from 4.6, but a survey showed that 36% of manufactures that responded were experiencing supply chain disruptions, while 71% said the disruptions were creating higher operation costs and 44% said some of those higher costs were able to be transmuted to consumers, the Times Record News reported. 

One industry that has not been as resilient is retail. A survey taken of that industry showed 62% said supply-chain disruptions increased their operating costs and 81% said they are increasing prices. This is in part due to the recent trend of holding a sales index near zero.