Supply chain issues, rising costs and inflation have been ongoing economic issues in recent months, affecting national levels and beyond.
In Lubbock, the same problems hit the area and could continue into 2023, according to the Lubbock National Bank economic report. The bank issues a monthly local economic report detailing how the local economy ended in December 2022.
The analysis revealed that the economy has slowed down in the last month of 2022, although there has been growth in the jobs and tourism categories.
The labor force has grown 1.4% since 2021, with wages up 5%. Unemployment fell to 2.9% from 3.3% in 2021.
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Tourism indicators with airline boarding and the hotel/motel receipt tax showed gains. Airline boardings were up 3% and hotel/motel tax collections were up 34% from December 2021. The report said these two are “a reflection that our economy is open and regulations have been relaxed.”
Lubbock’s year-to-date building permits were up 140% from 2021, largely due to large business booms. Leprino Foods, along with Tropicale Foods, announced their upcoming facility. UMC, Covenant and the Texas Tech South End Zone extensions were included in the jump.
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Housing starts fell 18% in 2022, although the report said this signaled “a normalization of this industry”. The average home price for December 2022 was $245,678, a 9% increase from December 2021.
Retail sales were up 10% from December 2021, and auto sales saw declines in the new and used categories. The consumer price index, which measures what consumers are paying for goods and services, has risen by 6.5% since November 2022.
These three categories – retail, auto sales and CPI – have been impacted by higher prices, supply chain issues and rising interest rates. Higher costs due to inflation will continue to have an impact in 2023, according to the report.
The report touched on agriculture, which showed increases in wheat, corn and cattle but a decline in cotton yields. Drought conditions will continue to be an issue for yields in 2023.
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Oil rose 6% between November and December. Over the same period, oil prices fell 3% and natural gas prices fell 15%. An increase in oil is expected “if China opens up and demand increases with the coming summer”.
Alana Edgin is a journalist covering business news in the Lubbock area. Send her a message tip to [email protected]
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