Week 3 | 2025

Employment and Unemployment:

As of November 2024, the Austin-Round Rock metropolitan area’s unemployment rate was approximately 3.4%, slightly below the previous month’s rate of 3.5%. This continues to outperform both state and national averages, reflecting the region’s resilient labor market.

Source: Bureau of Labor Statistics

Housing Market:

December 2024 data indicates Austin’s median home price decreased to $428,500, marking a 2.8% year-over-year decline. Increased inventory and slightly extended listing times suggest the market is stabilizing, offering potential opportunities for first-time buyers.

Source: Norada Real Estate

Retail Sales:

In November 2024, Austin’s inflation-adjusted retail sales tax collections showed a 0.3% increase from October but remained 0.5% lower than the same period in 2023. Year-over-year, Texas’ state-wide collections rose by 1.2%, signaling steady consumer activity.

Source: Federal Reserve Bank of Dallas

United States

Stock Market Performance:

The S&P 500 saw a 1.1% dip this week, driven by mixed corporate earnings reports. However, optimism persists for growth in the first quarter, with the technology and energy sectors expected to play pivotal roles.

Source: Reuters

Economic Growth:

Preliminary reports suggest the U.S. economy grew at an annualized rate of 2.5% in Q4 2024, slightly surpassing expectations. Analysts anticipate a moderated growth rate of 2% for 2025 amid shifting Federal Reserve policies.

Source: MarketWatch

Federal Reserve Policy:

The Federal Reserve has signaled cautious optimism regarding inflation control, hinting at potential rate cuts later in 2025. Market watchers are awaiting February’s policy meeting for clearer direction.

Source: Business Insider

Global Economy

IMF Growth Projections:

The International Monetary Fund (IMF) has maintained its 2025 global growth forecast at 3.1%, emphasizing the role of U.S. consumer spending and recovering Chinese exports in sustaining economic momentum.

Source: Barron's

Market Inflows:

Global equity funds experienced a net inflow of $12.3 billion this week, as investor sentiment improved following better-than-expected inflation data from major economies.

Source: Reuters

Currency and Bond Markets:

The U.S. dollar slipped 0.2% against major currencies this week, reflecting easing demand for safe-haven assets. Treasury yields remained steady, with the 10-year yield holding at 4.6%.

Source: Bloomberg

In the News…

Austin, Texas

Tech Industry Expansion:

Another global tech firm has announced plans to establish a regional hub in Austin, promising to add 900 high-paying jobs by 2027. This reinforces Austin’s reputation as a major tech hub and innovation center.

Source: Austin Business Journal

Local Business Growth:

The City of Austin approved new funding initiatives to support small businesses, particularly in creative industries. This move aims to bolster local entrepreneurship and diversify the economy.

Source: KXAN News

United States

Retail Trends:

U.S. retail sales surged 0.7% in December 2024, boosted by holiday shopping and increased online spending. Analysts expect a slight slowdown in January as consumers adjust to post-holiday budgets.

Source: CNBC

Automotive Industry:

General Motors unveiled its new electric SUV, set to hit the market by Q4 2025. The company aims to capture a significant share of the growing EV market while emphasizing sustainability and affordability.

Source: Reuters

Global Business News

Energy Sector:

Natural gas prices rose by 3.5% this week due to colder-than-expected winter weather in Europe and North America. Analysts predict further price volatility through February.

Source: Financial Times

Tech Industry Developments:

Apple announced plans to expand its AI research facilities globally, focusing on innovation in generative AI tools for enterprise and consumer applications. The expansion includes new research hubs in Europe and Asia.

Source: Financial Times

Stay tuned for more updates and insights in the coming weeks. As always, consult trusted financial and news sources for the latest developments.

Please note that economic conditions can change rapidly. Always verify data through reliable sources for the most accurate information.