A new report by the Federal Reserve Bank of Dallas states that the Austin economy is showing signs of weakening. However, KVUE News talked to a well-respected local economist, who said he disagrees.
Angelos Angelou with Angelou Economics told us he likes to use the term, “cooling off” instead, when describing the slower growth of jobs.
- 2016 -- 29,300 new jobs with average job growth of 3.1%
- 2015 – 41,800 new jobs with average job growth of 4.6%
The report also showed most sectors created jobs, except for manufacturing, which actually lost jobs.
According to Angelou Economics, the loss of jobs in manufacturing is due to Europe not performing well and the softening of the Asian market, which has impacted Austin's exports.
"That can have serious concerns for the technology sector because technology products we enjoy today are sold in the US market are made in China,” said Angelou.
While a record number of homes were sold in Austin until November of last year, there was also a slowdown with high-end homes.
"I'm talking about the 500-thousand plus market, especially the market over a million dollars per home,” said Angelou.
However, he thinks the cool down of the local economy may help with Austin's affordability crisis.
Angelou said he believes the labor market will become less expensive, and homes will become more affordable in the years to come.
Click here for the link to the full report by Dallas Fed.