Both the U.S. and Texas economies have contracted in 2009 but Texas continues to perform relatively better than the nation. While Texas economy the worlds 11th-largest continues to fare better than many other states Texas is feeling the effects of the worldwide recession. According to the National Bureau of Economic Research the U.S. economy peaked in December 2007 and has been in recession since then. Although the Texas economy slowed with the nations late in 2008 Texas gross product expanded almost twice as fast as the U.S. economy (2.0 percent versus 1.1 percent) during calendar 2008.
The Comptrollers office estimates that the Texas gross state product will contract by 1.7 percent during calendar 2009. The U.S. economy will shrink even more by 2.8 percent for the year.
Jobs
- The U.S. lost 5.7 million jobs from July 2008 to July 2009.
- Texas lost 41000 jobs in June 2009.
- Texas June 2009 unemployment rate is 7.5 percent up from 7.1 percent in May.
- The July U.S. rate is 9.4 percent down from 9.5 percent in June.
- The Texas unemployment rate has been at or below the national rate for 30 consecutive months.
- In the 12 months ending in June 2009 Texas lost 266000 jobs.
Housing
- Thus far Texas has weathered the national real estate crunch without significant damage to property values but sales and construction activity have slowed. Despite its continuing resiliency Texas is not immune from the national real estate crunch.
- 6676 building permits for single-family homes were issued in June 2009 reflecting a 12.4 percent drop over June 2008. The number of permits issued in the 12 months since June 2008 is 60625 a decrease of 34 percent from the period one year earlier.
- Multi-family building permits are also down falling by 54 percent from June 2008 to June 2009. The number of permits issued in the 12 months since June 2008 is 32442 a decrease of 43 percent from the period one year earlier.
- Sales of existing homes are lower than recent years. Texas sales fell by 11 percent from June 2008 to June 2009. Even so the January to June increase this year at 103 percent is greater than during the previous January to June periods.
In Texas prices for existing single-family homes rose by 0.2 percent from June 2008 to June 2009.
- The Texas foreclosure rate has remained largely stable for the last three years. Texas experienced 12077 foreclosure filings in July 2009.
- In July 2009 the Texas foreclosure rate was one in every 781 mortgages. This was substantially better than Nevadas one in 56 Californias one in 123 and Floridas one in 154.
Oil and Natural Gas
- The all-time high crude oil closing price was $145.29 on July 3 2008.
- Crude oil futures closed at $67.51 per barrel on August 14 2009 more than 50 percent below the level of one year ago but close to double this past winters lowest price of $33.98 in February.
- In fiscal 2008 production tax collections for natural gas were up 42 percent over fiscal 2007. Tax collections for oil were up 72 percent.
- Natural gas production tax collections for the first ten months of fiscal 2009 are 36 percent lower than in the same 10 months in fiscal 2008; oil tax collections are 34 percent lower.
Taxes
- Texas sales tax receipts for July 2009 were down 11.6 percent from July 2008.
- Thus far state sales tax receipts for fiscal 2009 are down 1.7 percent from the same point in fiscal 2008.
- Texas Motor vehicle sales tax collections for this month through Aug.5 are at $37.161 million down 15.2 percent for the same time last year.
- Mean average transaction prices for new cars declined by 7.2 percent from July 2008 to June 2009 to $23695.
- Nationally auto leasing accounted for 21 percent of auto sales in July 2009 down from 24 percent in July 2008.
- Congress has authorized an additional $2 billion for the Cash for Clunkers" rebate to extend the program through Labor Day which should fund an additional 500000 new auto sales on top of the 250000 already completed.
Stimulus Package
- In Texas an estimated $18 billion in federal stimulus money is flowing to state and local governments. The Comptrollers office is tracking the $14.3 billion that comes through the state Treasury. The Comptrollers analysis is ongoing. For the latest information visit our ARRA Web site A Texas Eye on the Dollars.
Consumer Confidence Index
- Consumer confidence across the nation remains very weak. In July 2009 the U.S. index stood at 46.6 (with 1985 = 100). Texas and surrounding states fared better than the rest of the nation. Texas regional index fell to 73.3 down 8 percent for the year.
