Dallas Fed Forecasts “Healthy Near-Term Outlook” for Houston Metro

While recent economic data collected and presented by the Federal Reserve Bank of Dallas was mixed, analysts are still forecasting a healthy outlook for the Houston metro in the short term. Dallas Fed researchers came to their conclusions by analyzing employment figures, as well as rig counts and housing permits.

The Houston Business-Cycle Index accelerated to a 6.2% annual growth rate for three months ending in April 2019, partly due to a 3.4% annual job growth rate and an unemployment rate of 3.5%. Additionally, an index of 11 leading indicators grew at an annual pace of 2.8% over the same three-month period, suggesting healthy job growth.

On the other hand, declines in the U.S. rig count (-2.5%) and a -.8% decrease in housing permits along with U.S. chemical production, represented “the biggest drags on on the index,” Dallas Fed analysts commented.