Comerica Bank’s economic index showed a decrease in activity for the first three months of 2015. For January, the index was down to 106.3, a .9% decrease from December. Though this is the first three-month decline since June 2009, the index is still 34 points above the all-time low.
The report showed that five of the eight index components were down in January including exports, claims for unemployment insurance, housing starts, rig count and hotel occupancy. Other markets such payroll employment, house prices and sales tax continued to show positives numbers.
The Texas Workforce Commission reported that the state added 7,100 jobs in February, including 6900 oil and gas jobs. This was the smallest monthly job gain since October 2011. Read more here.
Low crude oil prices and a decline in drilling activity are at the center of this economic slowdown.
“Obviously, the more than 50-percent drop in oil prices from mid-year 2014 to present is a significant drag on the Texas economy,” Dye said in a statement. “We know the payroll job growth for the state has slowed through February and the weekly rig count numbers have declined into March, so we expect to see more evidence of a downshift in the Texas economy in the months ahead.”
Read more at comerica.com