With pressure from a softening housing market and tightening credit conditions, the national economy is at greater risk for recession than it has been since 2001. The Texas economy could have been expected to show signs of fatigue this year, especially after relatively robust growth in 2005 and 2006. Yet despite the gloomy national economic situation, Texas economic growth remains resilient. The following outlook of the state's economic recent past and future prospects highlights leading sectors and identifies areas that might produce a drag on economic growth into 2008.