For 7 February 2006
COLLEGE STATION (theeagle.com) – The Texas economy is strong and is likely to outperform the national economy this year, Dr. Mark G. Dotzour, chief economist with the Real Estate Center at Texas A&M University, told local business leaders Wednesday.

About 40 percent of the major corporations in the United States will increase their workforces during the next six months, and most of the corporations that are expecting layoffs are in the automotive industry. Texas is not greatly affected by layoffs in this industry, as there are few automotive plants here.

New bankruptcy laws and slightly higher interest rates may slow consumer spending, which could cool the overall economy somewhat.

Dotzour noted the prevalence of real estate investing in the past five years and said speculative investors will move back into the stock market when fraud on Wall Street is eradicated.

He also said there was no reason to worry about home prices in the Bryan-College Station area being overinflated.

“There is absolutely no reason to be concerned about buying a home here,” he said.