Texas Indicators: Continued Economic Health

In Industry News by Bradford

Thanks to a “robust” July 2019 job growth and steady unemployment growth, Texas’ health economic indicators remain strong.

According to data released by the Federal Reserve Bank of Dallas, the state’s Texas Business-Cycle Index grew at an annualized 5.9%, “increasing for the seventh straight month, following a six-month period of slowing growth.”

Even as the rig count and oil/gas prices are slipping, and even as exports dipped by 0.7% in June 2019, Texas’ employment growth clocked in at an annualized 3.4%, following an upwardly revised growth of 4.0% from the previous month. “Job growth remained higher than the state’s long-run average of 2.1%,” the Dallas Fed observed, adding that the employment forecast is for a 2.6% growth in 2019. The unemployment rate remained at 3.4%.

Meanwhile, single-housing permits dropped 6.1% in June, with Dallas-Fort Worth, El Paso and Houston trending downward. The cities of San Antonio and Austin increased.

Will the federal interest rate cut provide momentum for the commercial real estate industry?

Texas Indicators Economic Health Original Article: Connect Media News
Sept 03, 2019