According to the Austin American Statesman, Austin’s economy in 2017 will still be strong, but will face some challenges. Here are a few highlights:
- The annual rate of job creation in November dropped to a seasonally adjusted 2.1 percent, according to the Federal Reserve Bank of Dallas.
- Oil and gas prices are increasing, and the private sector continues its growth.
- Consolidations and potential acquisitions will hit the semiconductor industry.
- Venture Capitalists have slowed down. They still have the money; they are just waiting on the right valuations to make their investments.
- Start-ups could become acquisition targets. And, out-of-state companies will continue to seek Austin for their talent pool and lower cost of living.
- Personal tech is evolving. Moving beyond Apple and Android to augmented reality like Pokemon Go, Skills (voice activated apps) like the Amazon Echo, and chatbots, intelligent agents working through Facebook and Messenger.
- The Austin real estate market has been a bright shining star for the housing markets across the U.S. Of late we have seen a small decline in housing, due in part to a slower job growth. See the Texas A&M Real Estate Center’s take on this.
- Retail and restaurant openings will continue to be on the rise.
The Federal Reserve Bank of Dallas released its Austin Economic Indicators report January 5th. According to the report job growth continues to lead in Austin over Texas and the U.S. and unemployment is still down at a low 3.0 percent. Although growth has slowed from Austin-typical fast-paced growth, we still are looking forward to a strong 2017.
The Austin American Statesman covers the full story here.