While the San Antonio Business Cycle expanded at an annualized 2.5% rate in July 2018, the statistic remained below its long-term average of 3%. According to analysts with the Federal Reserve Bank of Dallas, the index has trended below its LTA since the end of 2017, possibly because a tight labor market is restraining job growth.

Job growth remained soft, increasing by an 0.4% annualized rate over three months through July. The 3.2% unemployment rate was below the state’s 4%, and the U.S. rate of 3.9%. Taking the hit in job growth were Leisure and Hospitality, information and manufacturing.

Home affordability declined in Q2 2018, with the share of homes sold that a median-income household could afford falling from 62% to 55.8%. Meanwhile, July home inventories stood at 3.3 months supply.

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