Region’s economic activity rising moderately, Fed says

Beige Book notes strong demand across sectors, energy industry stability.

The stabilization of the energy industry and continued strong demand across a wide array of industries fueled the ongoing expansion of regional economic activity in recent weeks, according to a report Wednesday from the Federal Reserve Bank of Dallas.

In its chapter of the Beige Book, an anecdotal survey of the economy compiled every six weeks by the Federal Reserve banks, the Dallas Fed said the economic activity in its district grew at a “moderate” pace.

The Dallas Fed’s district includes all of Texas and parts of New Mexico and Louisiana. Texas accounts for more than 95 percent of the region’s economic activity.

While a few of the Dallas Fed’s contacts noted small pockets of softness, demand improved across virtually all sectors of the regional economy, according to the report. Employers continued to add workers, and outlooks on the economy remained mostly optimistic despite some concerns about federal policies.

“A few firms noted they were in wait-and-see mode due to uncertainty surrounding U.S. trade policies,” the report said.

Labor markets in the region remained tight, with elevated demand for some high-tech and skilled-trade workers pushing wages higher. Oil and gas firms also noted upward wage pressures, and staffing services reported a surge in requests for white-collar workers in the energy sector.

Oilfield services companies said they saw demand continue to improve and were able to fetch higher prices, especially in the Permian Basin. Drilling activity increased there and in the Eagle Ford, but several contacts told the Dallas Fed that they expect the rising rig count to taper off near the middle of the year.

Manufacturers reported contin- »