Is Texas Headed For An Economic Slowdown?

Texas Comptroller Carole Keeton Strayhorn this week released her forecast for the state’s economy over the next three years.

Among other things, the Comptroller’s office predicts that there will be somewhat of an economic slowdown looming:

“After the robust growth in our Texas economy in 2004, 2005 and 2006, the next three years are expected to deliver healthy growth, but at a slower pace,” Strayhorn said.

Strayhorn noted that, “With the state’s increasing ties to U.S. performance, Texas economists pay close attention to national developments when forecasting the direction of our state’s economy. Nationally, sales of existing homes, prices and new construction starts are falling. Although the Texas housing industry remains relatively healthy, it will be hampered by a smaller number of new home starts over the next three years, as well as a slowing economy in general.”

I don’t know how healthy the housing industry remains and would argue it’s been in a slowdown for much of this year and that what Strayhorn’s office predicts is actually a continuation of a slowdown we’ve already experienced.

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