Dallas Fed: Austin Business-Cycle Index Continues Increase in November

The Federal Reserve Bank of Dallas’ Austin Business-Cycle Index increased by an annual 8.9% annualized pace in November 2017, marking the fastest rate of growth since 2015. Analysts point to strong employment gains in the second half of the year and unemployment declines as the reason.

The Austin unemployment rate of 2.8% was lightly higher than that of October 2017, but was well below the area’s long-term average of 4.3%. Meanwhile, jobs grew at a 6.4% annualized rate over three months through November. Only construction and information services lost jobs, with other sectors posting gains.

Though housing permits slowed toward the end of 2017, year-over-year growth was nearly 6%, compared to the state of Texas’ 2.5%. Existing-home sales reached a new high in November, with the median home price at $296,815.

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