Same Story in Odessa: Economic Index Continues Decline

Despite the higher crude oil prices in October and an increase in Permian Basin activity, the Odessa Economic Index continued its decline. The index fell to 193.6 for October, down from the 194.1 reported in September, with an 11.3% drop from the 218.1 of October 2015.

The reason for the decline, according to economist Kar Ingham, is due to economic indicators other than oil rig counts, oil prices and activity increase. Specifically, general real spending based on October sales tax receipts fell by close to 14% year over year. Real auto spending also dropped, while the residential real estate market continued to weaken, as well.

Additionally, employment continues sluggish. Ingham noted that approximately 13,200 jobs were lost in Odessa between the employment peak in December 2014, and June 2016. Much of the loss took place among oil and gas, though Ingham allowed that industry employment could be starting to stabilize.

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