Dallas Fed Says Economic Conditions Have Firmed Up

Each day seems to bring fresh signs that the local economy is on the upswing. The Federal Reserve Bank of Dallas reported in its latest Beige Book that new and existing home sales increased over the past six weeks. “Homebuilders said that while overall starts remained at low levels, the momentum from the homebuyer tax credit was helping demand,” the report said. Prices continue to firm, and outlooks are “guarded but optimistic.”

Several other sectors in the North Texas economy also showed signs of improvement in the last six weeks.  High-tech manufacturing, retail and staffing services were among the sectors that reported an increase in demand during the period. There are even indications that credit markets are thawing. “Despite weak conditions, contacts at most financial services firms…said they have managed to end the year with flat or very modest growth in loan volumes.”