Early Signs of Economic Slowdown in Texas

The Texas economy has been thriving, even in the face of adversity, and the country is struggling as a whole. Jobs have been relatively easy to find, purchasing power has still been pretty good, and overall, Texans have been living ok.

However, there are now some indicators that the ride is about to come to an end, and we could see some economic woes hitting our state.

Job Growth Is Slowing

One of the key indicators in an economic slowdown is what the job growth rate looks like. In the U.S., the national job growth rate is .7%. In Texas, it's been pretty steady at a staggering 2.5%.

However, the job growth rate here just fell by 1.3% which is pretty significant. Typically, that says companies based in Texas are seeing signs that tell them they need to start slowing down on adding salaries, as business could be a bit weaker than it had been.

Construction In Texas Has Slowed

Now, if you live in Amarillo, you'd challenge this one without a doubt. However, across the state of Texas, construction has slowed down significantly.

The housing construction has slowed by 7%, which means less homes are being built. When demand for home purchases goes down, it tends to signify people are being careful about big purchases due to the economy and what they are seeing with it.

How Is Inflation Affecting Texas

This is where things get a bit confusing. With all the tariffs that have been imposed recently, product prices have risen. However, inflation in Texas is only up 1%. This has actually confused experts as to why inflation in the state is so low compared to the rest of the country.

Some of them think it could have something to do with the fact that businesses may have stocked up on things they need prior to the tariffs being imposed, therefore they haven't had to make many purchases. However, that's bound to swing at some point, and they believe it could be soon.