According to economist Andrew Gledhill of moodyseconomy.com, the high-tech industry is one element. The slowdown in technology spending last year and early this year has created a pent-up demand for technology. Gledhill says that Texas was among the last to join the recession and as conditions begin to turn nationally, “Texas will also be the first to bounce back.” Click Here for More
The recession didn’t start at the same time in every state, and it won’t end at the same time either. A new forecast from Moody’s Economy predicts that jobs growth will return first in those five states, starting in the last quarter of this year. Four of those states benefit from strong high-tech industries, and the fifth, Texas, has a strong base of energy industries. Click Here for More
The criteria for the survey included the labor market, income, credit quality/banking, real estate and consumer spending. Moody’s conducts a regional employment forecast as well as an “adversity index” to gauge the status of state economies.
In the case of the northwestern states, the reason they got picked is because of their high concentration of high-tech companies, Moody’s economist Andrew Gledhill said. Analysts expect a pick-up in tech spending as the recession gets going.
As for Texas, it was the oil industry: The strength of the industry made the lone-star state one of the last states to join the recession, and therefore will make it among the first out. Click Here for More