Amarillo Economic Analysis

Without all of the Data Center activity, Amarillo's economy would be in the middle of a slowdown due to job losses.

After Tyson dropped an entire shift, 1700 workers, we are also seeing losses in manufacturing and health care at 2 of Amarillo's most important employers.

Amarillo workers employed for May is down 223 from last year, while total Panhandle is up 750 (meaning 973 more working outside Amarillo - primarily data center construction). The unemployment rate jumped .4% to 3.5% (primarily Tyson). Panhandle wages are 8%; Amarillo 4%.

The Household Survey shows a decrease of 200 jobs from last year, and the Employers Survey shows a loss of 260 jobs.

Retail Sales are up 18% from 12 months ago. Year-to-Date Sales are up 11%. New Car Sales are down 4% from last June. Used Car Sales are down 1%.

Motel bed tax receipts are up 27% for the month, but down from last month (AirBnbs are filled by data center workers, so regular motel bookings and room rates are up).

Airline boardings are down slightly, as United Airlines dropped one flight daily.

Housing in Amarillo is better, with prices up 4%, and 30-Year Mortgage Rates down 50 basis points from a year ago. There were 34 more starts this month than a year ago-up 94%. Year to Date Starts are up 63%. Building Permits are up 118% from 12 months ago. Year to Date Building Permits are up 47% from 2025.

There are 3 active drilling rigs in the Panhandle where there were none last year. Oil Prices are still over $75, and Natural Gas prices are down 22%.

Recent rains might help save corn this year. Prices are at $4.66, up 6% from a year ago. Wheat is down 7%, and this was one of the worst years ever for the crop.

Milk Prices are down 14% to $15.98, but area dairies are profitable due to cattle sales. Cattle continue to gain, as demand is steady and the herd isn't growing. Cattle Prices are up 14% from last June and are making over $200 per head out of the Feedyard.