El Paso Economic Indicators – Dallasfed.org

August 24, 2022

El Paso continued to experience strong economic growth in July. The Metro business cycle index rose, unemployment remained low, U.S. auto production and sales increased, and the labor market finally recovered jobs lost due to the pandemic. However, the El Paso housing market has cooled.

Business cycle index

The El Paso Business Cycle Index rose an annualized 13.1% in July, slower than June’s 16.5% increase, but still a notable gain (Chart 1). The year-to-date growth rate of 4.9% reflects strong economic activity in the border region.

Chart 1

labor market

Unemployment remains above pre-pandemic levels

El Paso’s unemployment rate was 4.7% for June and July 2022 (Chart 2). The Metro unemployment rate remains above pre-pandemic levels and is above rates in Texas (4.0%) and the United States (3.5%).

Chart 2

Employment Return to pre-pandemic levels

Non-farm payrolls rose 9.7% (2,535 jobs) in July, driven by growth in the public sector (33.7%, or 1,683 jobs), leisure and hospitality (21.8 %, or 643 jobs) and construction and mining (15.8%, or 215 jobs). works) (Chart 3). Education and health services fell 7.0% (293 jobs) and professional and business services fell 4.2% (139 jobs). El Paso has finally recovered all the jobs lost due to the pandemic.

Chart 3

Lodging

In July, home sales in El Paso fell 1.4%, a steeper decline than the 0.6% decline recorded in June, as the median home price rose at an annualized rate of 20.1% (Chart 4). However, the price gain was less than the prior month’s 30.8% annualized increase.

Chart 4

Industrial production and activities related to maquiladoras

The U.S. industrial production (PI) index fell 0.1% in July, but was up 3.9% from a year ago (Chart 5). Mexico’s IP index rose 0.5% in June; it is 3.8% higher than in June 2021. The Institute for Supply Management (ISM) manufacturing index fell slightly to 52.8 in June and is down 7.1% from it a year ago. However, ISM readings above 50 signal continued expansion in the manufacturing sector. Meanwhile, U.S. auto sales hit 13.3 million seasonally-adjusted units in July, from 13.0 million in June, as auto production rose to 10.7 million. units, compared to 10.0 million in June. Production trends in the United States and Mexico are important to El Paso’s economy because of cross-border manufacturing relationships.

Chart 5

NOTE: Data may not match previously published figures due to revisions. The El Paso Metropolitan Statistical Area includes El Paso and Hudspeth counties.

About El Paso Economic Indicators

Questions can be directed to Prithvi Kalkunte at [email protected] El Paso Economic Indicators is released monthly after the release of state and metro employment data.