February 18, 2020
In October 2019, the Odessa Economic Index hit its all-time high of 270.2. In November 2019, the OEI fell to 269.6, amid year-over-year declining economic indicators. Noted West Texas economist Karr Ingham: “The coming few months will tell whether (the index metric) becomes the cyclical peak ending a growth cycle, lasting exactly three years.” The economy, however, is likely to be in for a cooling period, he noted.
The dropping monthly indicators included auto spending and hotel/motel activity, general spending, new housing construction and existing home sales, though home sales prices continue increasing. Meanwhile, the Texas Permian Basin Petroleum Index declined for the ninth straight month in November. On the positive side, while oil and gas industry employment estimates might be revised in the coming months, “the current estimates suggest industry employment in Midland-Odessa has thus far held up relatively well, under the circumstances,” Ingham said.
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