Texas economic activity expanded at a modest pace in April. While the manufacturing sector rebounded, the service sector slowed. Texas employment growth was moderate in the first quarter, slightly above the state’s roughly 2 percent long-run trend. The unemployment rate held steady. Additionally, there were no signals of weakness in labor market indicators such as layoff notices and jobless claims. Price pressures have eased, and banks reported slowing loan demand and an uptick in nonperforming loans. Overall, the outlook remains positive, and Texas firms expect stronger activity in the coming six months. Separately, ... (full story)