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Amarillo Local Economy Snapshot: Latest Developments and Indicators
Amarillo National Bank forecast and employment figures provide the most recent detailed view of conditions.
How we reported this
Amarillo National Bank expects the local inflation rate to settle at 2.4 percent in 2025, according to its annual economic forecast delivered in early January. The projection marks a decline from the 9 to 11 percent range recorded in 2022 and sits 0.2 percent below the anticipated national rate while remaining 0.4 percent above the Federal Reserve target.
Why the Forecast Matters Now
The bank issues its outlook each January to help residents and businesses plan amid shifting price pressures. Even with a slower rate of increase, the forecast notes that consumer prices themselves are not expected to fall. Different households will feel the effects unevenly depending on spending patterns and income sources.
Employment and Sales Figures
Total employment stands at 96,902. The unemployment rate reached 3.5 percent as of May, reflecting a 0.4 percent rise tied largely to changes at Tyson Foods. Retail sales rose 18 percent over the prior twelve months and stand 11 percent higher year to date. New car sales fell 4 percent and used car sales declined 1 percent during the same period. The 2024/2025 budget period shows $78.8 million in sales tax revenue and $52.8 million in property tax revenue generated from that employment base.
Housing and Growth Drivers
Housing prices increased 4 percent. New housing starts rose 94 percent, adding 34 more starts than the previous year. The local economy continues to draw support from data center construction, meatpacking operations that process roughly 25 percent of U.S. beef, renewable energy projects, and traditional agriculture and energy sectors. These elements underpin wage growth across the Panhandle region.
Residents can review the full Amarillo National Bank analysis on the bank website for detailed sector breakdowns. Businesses tracking costs may compare their own price trends against the 2.4 percent benchmark when preparing budgets. No additional weekly updates appear in the most recent available local reporting.