From the viewpoint of the Dallas Federal Reserve it is morning in Texas. In its latest assessment of the state’s economy the Fed notes that Texas added 13,500 jobs in November for a year-to-date total of 172,000. While the state’s unemployment rates held steady at 5.2% the state’s job creation engine pulled ahead of the national engine.

Texas has traditionally managed a higher rate of job and overall economic growth than the rest of the nation, but for the past few years Texas has stumbled. It now appears that Texas again moving into its dominant role. The November employment growth was across the board with even the airlines sector appearing to have bottomed out.

The Fed also offered an upbeat look at the state’s housing market. At present they see absolutely no evidence of a housing bubble or pending deflation in the housing market. While housing prices soared nationally by 12% in the third quarter of 2005 versus 2004, the Texas market only moved up 5.3%

Inflation? Outside of energy the Dallas Fed finds none in the state and even in energy it sees hurricane related bottlenecks clearing. With the regional Fed’s Beige Book and Texas Manufacturing Outlook Survey both indicating strong growth both for the near-term and long-term it appears the absent an unforeseen catastrophe, Texans should see a very happy 2006.

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