The Bank of Montreal (BMO) is optimistic about the Texas economy, despite recent cooling of the state's economy. The bank's new Texas Business Outlook report suggests that business leaders are taking a more judicious approach in the current economic climate. The report also highlights the success of Texas companies that are aligning expansion strategies with rigorous capital discipline, flexible balance sheets, and investing selectively in new initiatives. The state’s nearly $3 trillion economy has recently experienced a slowdown, with job creation expected to resume this year. However, the BMO report assesses Texas as well positioned due to population growth, sustained business investment, resilient labor markets, and strong energy, industrials, technology infrastructure and financial services sectors.