Austin Economic Indicators May 7 2015 via Dallas Fed

The Austin economy expanded modestly in March. Jobs grew at an annualized 0.4 percent rate, compared with a 1.2 percent contraction for the state overall. The unemployment rate remained flat at a low 3.4 percent. Austin housing market indicators were mixed, with low inventories and strong home price appreciation indicating strength but permit and construction data suggesting some weakness. The Austin Purchasing Managers Index points to some improvement in manufacturing activity in April.

The Austin Business-Cycle Index moderated in March, though it expanded at a rapid 7.8 percent annualized pace over the six months ending in March. Over this time, annualized job growth has been 3 percent and the unemployment rate has fallen 0.6 percentage points to 3.4 percent. While the Austin economy continues to grow robustly, it has gradually decelerated since the end of 2013, likely due in part to very tight labor markets. With the sharp decline in the oil and gas sector of Texas and the slowing in the state’s economy, the Austin economy is likely to continue to moderate in the coming months.

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