As Good Times Roll, Texas Firms Take Expected Slowdown in Stride
Ask Texas business owners or executives whether they see any signs of the slowdown economists say is settling over the state, and the answer will probably be no. But then ask whether they're doing anything to prepare for a slowdown, and you'll probably get a yes.</br></br>It's a question of perspectives. Businesses in most major sectors of the Texas economy say things are chugging along just fine right now. But they aren't willing to ignore predictions emanating from the likes of Federal Reserve Board Chairman Alan Greenspan that sweet could turn to sour in the coming months.</br></br>Most, in fact, expect the worst. But their "worst" -- a moderate slowdown in economic activity from last year's frenetic expansion -- isn't so bad, especially when compared to the recession that an increasing number of economists say is possible, if unlikely.</br></br>Nearly everyone agrees that Texas' economic performance today mirrors much more closely that of the nation than it did a decade ago, thanks to the state's diversification away from natural resources. As state Comptroller John Sharp puts it: "There's no question we are no longer economically the Republic of Texas." But, he adds, the state's rate of growth will probably outpace the nation's during the expected slowdown, just as it has during the strong expansion of recent years.</br></br>Here's a sample of what Texas businesspeople are looking for in the next year or so -- with the views of a couple of economists thrown in for good measure.