Fort Smith Economic Indicators Show Slight Gain

The Economic Activity Index for the Fort Smith metro area rose slightly in November, according to the latest report from the University of Arkansas at Fort Smith’s Center for Business Research and Economic Development.

The index, released Tuesday, also contains some data from December and January. The index of 95.9 for November was slightly higher than the 95.5 a year ago, and higher than the previous estimate of 95.7.

The report showed employment fell 5.6 percent between January 2011 and January 2012. Manufacturing lost 2,200 jobs, or 10.6 percent, since January 2011.

The only job sector that showed an increase was mining, logging and construction, which gained 100 jobs, or 1.5 percent.

Unemployment stood at 9.2 percent in January 2011. The rate for January 2012 is not yet available.

“The revised jobs data suggest that the weakening employment picture toward year-end was worse than first estimated,” the report stated. “This will likely be the story for much of 2012.”

On the positive side, December retail sales and January auto sales were higher, as were January’s residential sales and construction permits.

Home sales rose 6.7 percent, with 112 homes sold compared to 105 the previous January. The value of the homes sold rose 27 percent.

Thirty-two residential construction permits were issued in January, compared to 31 a year earlier. However, the value of those permits fell 17.2 percent.

Also, Fort Smith’s airport traffic increased 7.2 percent over January 2011.

The economic activity index includes monthly Fort Smith Metropolitan Statistical Area retail and home sales, residential permits and value, wage and salary employment and the unemployment rate.

Auto sales reflect only the Arkansas counties in the MSA.

The Fort Smith MSA comprises Sebastian, Crawford and Franklin counties in Arkansas and Le Flore and Sequoyah counties in Oklahoma.

The Center for Business Research and Economic Development is part of UAFS’ College of Business.