The oil and gas industry has been a driver of the Texas economy for the past 40 years. Its contribution declined with the oil-led recession of 1986 and appeared to slip further in the 1990s as the high-tech industry boomed. But oil and natural gas prices have risen since 1999, reaching record...

Although still outperforming the nation,> the Texas economy weakened toward the end of the year. Manufacturing and housing have been the most fragile sectors, but growth has moderated in other areas as well.

A sluggish national economy, the global credit crunch and Hurricane Ike have taken some steam out of Texas' growth.