Dallas−Fort Worth Economic Indicators

The Dallas−Fort Worth economy softened in October. Employment was flat. Hourly earnings and sales tax collections fell. Existing-home sales picked up, and months of supply also ticked upward.

Labor market

Job growth halts

Employment in DFW changed little in October after climbing 4.3 percent in September (Chart 1). Job growth was broad-based across the major sectors during the three months ending in October, with the strongest gains seen in professional and business services, financial activities, and trade, transportation and utilities. The unemployment rate in DFW ticked up to 4.0 percent in October.

Wages dip

DFW private hourly earnings were $35.35 in October, slightly down from September’s figure of $35.41. The three-month moving average of hourly earnings ticked up to $35.21, remaining above the state average of $33.31 but below the national average of $35.34 (Chart 2). Wage growth in DFW has slowed over the past year, with wages up 3.3 percent year over year in October, less than the gains of 3.8 percent in Texas and 4.0 percent in the U.S.

Sales tax collections

In October, DFW sales tax collections fell 1.1 percent month over month to $245 million (Chart 3). Sales tax collections were down 1.6 percent in Dallas and 1.1 percent in Fort Worth but rose 1.0 percent in Texas. Year over year, DFW sales tax collections were up 0.7 percent, and statewide collections rose 5.3 percent.

Housing

Housing demand strengthed in October. DFW existing-home sales increased 5.5 percent after rising strongly in September (Chart 4). Statewide, sales increased 6.0 percent in October, while they fell 1.0 percent nationally in September, the latest data available. According to business contacts, high mortgage rates and prices are dampening affordability, limiting home sales. Incentives such as price reductions and rate buydowns continued. Existing-home inventories rose to 3.6 months of supply in DFW and held steady at 4.3 months in Texas in October.