CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
US English

Texas economy booming at close of 2021

By Joseph Toppe

20:07, 12 January 2022

Texas flag on US dollars
The Texas economic region scored better than the rest of the US - Photo: Shutterstock

While most regional US economies grew modestly the last month and a half of 2021 because of Omicron-induced supply chain disruptions, the state of Texas and southern New Mexico expanded at a robust pace across all sectors.

On Wednesday, the US Federal Reserve released its first of eight Beige Book reports of 2022.

Each report is designed to update the American market on economic changes in 12 different US cities and neighbouring regions including Philadelphia, Boston, New York, St. Louis, Cleveland, Minneapolis, Richmond, Kansas City, Atlanta, Chicago, San Francisco and Dallas.

In an interview with, Clemson University economist Bruce Yandle said the Beige books – a product of the Federal Reserve's district banks – are a more capable indicator of the local markets.

“The content is more valuable to those considering the relative merits of different US regions than others predicting how the national economy is performing.”

The Dallas regional economy, which includes all of Texas and southern New Mexico, led all districts with strong gains in employment, wage, and price growth, while home sales also remained high, and loans increased.

West coast sectors degrade

However, in both the Chicago and San Francisco regions, economic activity was modest as employment and consumer spending went up slightly. In the San Francisco region, which includes the states of California, Washington, Oregon, Idaho, Nevada, Arizona, and Utah, “conditions in consumer and business sectors deteriorated,” according to the report.

The Cleveland, Richmond, and Atlanta regions all experienced the same modest growth over the last part of 2021. The Philadelphia region was below pre-pandemic levels. The St. Louis region experienced modest economic change, but the report added, “Employers reported continued difficulties hiring to meet increased demand.”


147.93 Price
+0.500% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.19


483.32 Price
+1.130% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.17


0.70 Price
-1.200% 1D Chg, %
Long position overnight fee -0.0253%
Short position overnight fee 0.0033%
Overnight fee time 22:00 (UTC)
Spread 0.0030


249.66 Price
+0.770% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 0.15

Edward Moya, senior market analyst for OANDA in New York, told, “Until the Omicron wave passes, the economy will continue to battle supply chain disruptions and labour shortages.”

“Pricing pressures are not widespread, while some regions have seen decelerations,” he continued. “Optimism remains generally high as the US should see around 4% growth this year.”

Both the Kansas City and Minneapolis regions saw moderate economic expansion over the period with large spikes in consumer spending.

In the Boston region, the economic performance was mixed, while activity in the New York region was subdued by “intensifying supply chain disruptions and labour shortages.”

Overall economic activity

According to the report, economic activity improved at a modest pace across all regions, while ongoing Omicron and Covid-19 cases remained an issue throughout the US as supply chain blockages, employee shortages, and rising inflation continued.

Despite the modest economic improvements, the demand for workers and materials remained high for all businesses. While farm incomes were elevated throughout 2021, according to the report, agriculture was marred by drought conditions across several of the economic regions.

Read more: US mid-day: Stocks wobble amid record US inflation 

Related topics

Rate this article

The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 570.000+ traders worldwide that chose to trade with

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading