San Antonio’s economy contracted in March as impacts of COVID-19 began to surface. The
San Antonio Business-Cycle Index
declined for the first time since November 2009. The unemployment rate increased, recent payrolls declined, and initial claims for unemployment insurance surged. Home sales activity declined in March, and stock prices of San Antonio-based companies were unchanged on net in late March and most of April.
Sharp Contraction Continues in Texas Service Sector:
The Texas service sector continued to see a dramatic contraction in April amid the COVID-19 pandemic and mitigation measures, according to business executives responding to the
Texas Service Sector Outlook Survey
. Labor market indicators reflected steeper declines in employment and further shortening of workweeks. The employment index fell from -23.8 to -35.2, its lowest reading on record. Perceptions of broader business conditions remained extremely pessimistic in April, while uncertainty continued to escalate.
Retail sales continued to fall sharply in April, according to business executives responding to the Texas Retail Outlook Survey. Retail labor market indicators continued to reflect sharp cuts in employment and workweek hours in April. The employment index shed over 20 points to hit an all-time low of -48.8. Retailers’ perceptions of broader business conditions remained bleak in April.
Read more on the Texas Service Sector and Retail Outlook Surveys