AQUA BOOK 2015 - Page 6

BUSINESS CYCLE INDEX A business cycle index tracks cyclical, or month to month, movements in an economy. The Business Cycle Indexes for South Texas metro areas are constructed using data of the unemployment rate, nonfarm employment, inflation-adjusted wages and retail sales. Gauging by this index, the economies of the five metro areas in the region have followed drastically different patterns since 2008, the onset of the last nationwide recession. ECONOMIC TRENDS Laredo and McAllen suffered a relatively more severe downturn in 2009. Their economies did not fully recover to pre-recession levels until 2014. The economic downturn of San Antonio was the mildest, and its business conditions have advanced at a much faster pace than the state as a whole. Brownsville and Corpus Christi also suffered a relatively mild setback during the Great Recession of 2007–2009. Since the depths of the contraction in 2009, their indexes inched up steadily by 2 to 3 percent each year. Business BusinessCycle CycleIndexes Indexes 120 110 Texas Corpus Christi Brownsville - Harlingen Laredo McAllen - Edinburg - Mission San Antonio 100 90 80 2008 2009 2010 2011 Sources: Federal Reserve of Dallas; author’s calculations. Sources:Federal Reserve Bank ofBank Dallas; author's calculations. 4 Annual Review of South Texas Economy 2012 2013 2014