July 11, 2017
Austin’s Business-Cycle Index expanded at a 4.1% annualized rate in May 2017, its slowest pace since the early stages of economic recovery in 2010. The Federal Reserve Bank of Dallas analysts also pointed out that the cycle is below its 15-year average of 6%.
There are various reasons for the decline, one of which is job growth. Though the unemployment rate is at 3.3%, jobs grew at a 1.5% annualized rate over the three months ending on May 31. Also declining were venture-capital funding and retail sales.
What did not slow down, however, were home sales in Austin. These rebounded in May, coming close to all-time highs. Year-to-date sales grew 4.5%, with home prices also nearing highs, at a median of $293,665.
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