The latest beige book from the Dallas Federal Reserve notes that finding retail workers in the Eagle Ford is becoming more difficult. The economist also highlighted rising commercial lending & real estate development.
The Federal Reserve Bank expects energy activity to increase in the second half of the year. Activity levels in South Texas and West Texas are expected to remain high as Gulf of Mexico activity increases.
There is difficulty finding workers across the state:
“Difficulty finding qualified workers became more widespread, with scattered reports among accounting, finance, single-family construction, auto sales, and primary metals manufacturing firms, as well as from retailers in the Eagle Ford Shale area.”
Moderate growth in loan demand:
“Financial institutions experienced moderate growth in loan demand. Commercial real estate and transactions lending increased solidly, especially in oil and gas areas around the Eagle Ford Shale and West Texas.”
Little change in energy, but growth expected:
“Energy activity was little changed at high levels. Global demand held steady, although there was some weakness from Mexico and Canada. Respondents expect improvement in energy activity in the second half of the year, due in part to anticipated increases in rig activity and production from the Gulf of Mexico.”
Read the full beige book at dallasfed.org