Austin Ranks No. 2 on New Economic Index Ranking

360 Bridge in Austin, Texas

Austin ranks No. 2 out of the country’s 102 largest cities on a new economic index ranking.

According to the October 2012 version of the On Numbers Economic Index released Monday, Austin is ranked 2nd on the list behind Oklahoma City.

The index measures the relative economic vitality of all 102 U.S. metropolitan areas that have more than 500,000 residents. It is updated on the second Monday of each month.

The index is generated by an 18-part formula that assesses private-sector job growth, unemployment, earnings, housing-price appreciation, and construction and retail activity.  (See details below for information on how these numbers are determined.)

Here’s the listing for the top 20 cities. Texas Cities are in Bold.

Oklahoma City	91.14
Austin	86.69
Tulsa	80.50
Houston	77.08
Omaha	76.66
Denver	76.59
Columbus	74.68
Boston	74.48
Pittsburgh	74.28
San Antonio	73.34
Little Rock, Ark.	70.22
Durham, N.C.	69.09
Cincinnati	68.76
Dallas-Fort Worth	68.25
Louisville	68.17
Charleston, S.C.	68.10
Ogden, Utah	67.95
San Jose	66.14
Salt Lake City	63.72
Portland, Maine	63.27

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How The On Numbers are Calculated:

The On Numbers Economic Index is calculated once a month, based on the latest official statistics for all U.S. metropolitan areas with estimated populations above 500,000. The index is designed to show the relative economic strength of those 102 major metros.

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SOURCES

All raw data come from the U.S. Bureau of Labor Statistics and the Federal Housing Finance Agency, and are the latest available figures as of the second Monday of the current month.

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TYPES OF CALCULATIONS

The formula for the On Numbers Economic Index has 18 components. They fall into four general categories:

• Five-year changes are calculated between the latest available data and the corresponding data for the same month (or quarter) five years ago.

• One-year changes are calculated between the latest available data and the corresponding data for the same month (or quarter) one year ago.

• Long-term trends are calculated over five one-year intervals: between the same month (or quarter) five years ago and four years ago, between the same month four years ago and three years ago, between the same month three years ago and two years ago, between the same month two years ago and one year ago, and between the same month one year ago and now. Those five percentages are then combined into a single score.

• Current rates are the latest rates available.

FORMULA COMPONENTS: These are the 18 components of the formula for the Index:

1.       Five-year change in private-sector employment.

2.       One-year change in private-sector employment.

3.       Long-term trend in private-sector employment.

4.       Five-year change in unemployment rates.

5.       Current unemployment rate.

6.       Long-term trend in unemployment rates.

7.       Five-year change in weekly earnings per private-sector worker.

8.       One-year change in weekly earnings per private-sector worker.

9.       Long-term trend in weekly earnings per private-sector worker.

10.   Five-year change in construction-sector employment.

11.   One-year change in construction-sector employment.

12.   Long-term trend in construction-sector employment.

13.   Five-year change in retail-sector employment.

14.   One-year change in retail-sector employment.

15.   Long-term trend in retail-sector employment.

16.   Five-year change in house values. (House values are updated quarterly. All other factors are updated monthly.)

17.   One-year change in house values.

18.   Long-term trend in house values.

 Link to ABJ article