The Texas economy boomed in 2017 and now insights from the latest Beige Book are positioning the state for continued economic growth.
Despite experiencing one of the most devastating natural disasters of 2017 through hurricane Harvey that hit the state’s largest city in last year’s summer months; Texas made positive headlines by taking some of the most precedent annual titles including having one of the fastest growing state economies across the nation.
With the release of the latest Beige Book – the Federal Reserve’s annual economic report released 8x per year- highlighting the economic state of the final months in 2017 and beginning of 2018 now available; insights are being extracted to help forecast the state’s performance throughout the current year. While this data covered in the report was collected from recent months past, it seems last year’s growth may have promise to continue on strong in 2018:
The Beige Book States, “Reports from the 12 Federal Reserve Districts indicated that the economy continued to expand from late November through the end of the year, with 11 Districts reporting modest to moderate gains and Dallas recording a robust increase.”
Through its in depth review of top economic factors, the report brings to light where these robust increases were felt the most across the state’s economic environment.
Buzzing as a top place for job growth along with increases in real estate appreciation and inventory, Texas sustained the largest year over year growth in population, making it a top place to live in the new year. As seen in a report published by Updater; three Texas cities ranked amongst the top ten moving destinations in 2017 with Dallas coming in second. And the biggest factor driving this migration? New work opportunities.
Supporting commentary from the Beige Book includes:
“Employment growth picked up, and wage and price pressures remained elevated. Texas’ seasonally adjusted unemployment rate was to 3.9 percent in December and remains below the U.S. unemployment rate of 4.1 percent. The Texas economy added 306,900 seasonally adjusted nonfarm jobs over the year, including 400 jobs added in December. Annual employment growth for Texas was 2.5 percent in December, marking 92 consecutive months of annual growth.”
And workers coming to the lone star state are staying. One of the nation’s leading moving company, U-haul released its latest report on the business conducted in the area which highlighted the majority of moves were made inbound vs those relocating. Attractive employment opportunities along with the affordable community lifestyle offered across Texas cities helped drive this year-long trend.
The Texas business economy experienced similar positive influx throughout the commercial landscape with leading companies breaking ground and increasing operations in the state.
“Expectations regarding future business conditions remained highly optimistic. The index of future general business activity inched up to 40.9, while the index of future company outlook held steady at 40.1.” The Dallas Fed reported in December.
With many contributing factors including the state’s massive investment towards commercial expansion that beat out most state funding in the nation – it’s no wonder top businesses are looking to the state to grow.
One of the biggest topics leading into the new year centered around Amazon’s new headquarters which will bring up to 50,000 jobs to the city selected to take on this massive project. With 20 top contenders named on the latest short list released by the retail giant; two Texas cities have found themselves as prospects for sustaining this major growth. And The Wall Street Journal is putting its money on Dallas.
Rises in manufacturing, energy and retail sectors were also notable for the past year with economic boost experienced particularly through the migrant workers spike and price increases.
As the Beige Book looks back on past performance for its analysis; the Texas community and economic leaders nationwide feel confident in predicting this boom is here to stay. At least for 2018 that is.
- Federalreserve.gov – Beige Book, 2018
- Dallas Biz Journal – Texas added more people than any other state in past year
- Trulia -The Hottest Real Estate Markets to Watch in 2018
- Updater -Updater Releases Top 15 Moving Destinations of 2017
- Uhaul -TEXAS: U-Haul No. 1 Growth State for 2017
- The Wall Street Journal -Where Might Amazon Build a Second Headquarters