Texas Economic Outlook: February 2010

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 … 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? Thank you for your interest in Wells Fargo’s Economic Commentary by Email. You are receiving this message because you have requested Economic Commentary information and updates sent via email. If you no longer wish to receive these emails, please click on the following link to access the Economic Commentary by Email registration page: http://www.wachovia.com/economicsemail.

Wells Fargo Securities Economics Group publications are produced by Wells Fargo Securities, LLC, a U.S broker-dealer registered with the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority, and the Securities Investor Protection Corp. Wells Fargo Securities, LLC, distributes these publications directly and through subsidiaries including, but not limited to, Wells Fargo & Company, Wachovia Bank N.A., Wells Fargo... More