Austin Economic Indicators March 2015 via Dallas Fed

The Austin economy expanded at a moderate pace in January. Jobs grew at a tepid annualized rate of 1.2 percent, below the state’s mild 1.7 percent. Unemployment ticked up to 3.7 percent, though it remains well below its historical norm. Despite continued price appreciation, home affordability increased slightly in Austin in the fourth quarter. The Austin Purchasing Managers Index fell in February, though it continued to indicate growth in the manufacturing sector.

The Austin Business-Cycle Index moderated in January, growing at a 7.8 percent annualized rate over the six months beginning in July. Though the index continues to expand robustly, it has slowed recently, due in part to below-average job growth in the second half of 2014. Given the low unemployment rate, however, at least part of the deceleration in job growth is likely due to firms having difficulty finding workers. This is supported by sharp increases in help-wanted advertising in the first two months of the year.

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