Oil, gas activity declines signal Odessa economic contraction
ODESSA – A decline in regional oil and gas activity has resulted in a decline in general economic activity.
According to the Odessa Development Corp., from July to August, the Odessa Economic Index dropped from 270.2 to 269.7. However, from August 2018, the index rose 5.9 percent from 254.8.
The monthly decline may represent the onset of a general economic contraction of some magnitude, meaning the index could continue to drop in the months ahead.
Economist Karr Ingham attributes the decline to the Texas Permian Basin Petroleum Index being "in a state of earnest decline since March."
From July to August, the index fell from 327.7 to 322.3. It fell 5.3 percent over the year from 340.4.
Other economic indicators such as general spending growth, auto spending, and construction indicators were also down.
According to Ingham, the local economy will most likely roll over from expansion to contraction.
If you’re looking for more news like this, head to the Center’s website.
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