Report: Fort Smith Economic Growth Moving Forward
by July 3, 2012 9:53 am 90 views
Despite lagging employment numbers, an economic report released Tuesday by the University of Arkansas-Fort Smith shows several sectors of the Fort Smith regional economy are continuing to show progress.
The Monthly Economic Indicators Index report, produced by the school’s Center for Business Research and Economic Development, showed retail and auto sales, residential real estate and airport traffic numbers were all up for the month.
Employment was again weaker, said CBRED director Dr. Kermit Kuehn.
According to a news release, May auto sales were up 19 percent from 2011, bringing year-to-date activity near 2011 levels.
Total new and used unit sales were just below the previous five-year average for May, suggesting 2012 will be another positive year for the sector.
April retail sales were up a respectable 3.7 percent. Year-to-date numbers are up nearly 4.5 percent over last year.
Airport passenger traffic counts at the Fort Smith Regional Airport offer additional support for the case that economic activity in the economy is generally improving. Total passenger traffic was 10 percent higher than May 2011 and is up 12.7 percent year-to-date.
“If it wasn’t for the sour jobs numbers, one could definitely say things are better than a year ago at this time,” Kuehn said of the May report. “With summer-like temperatures already upon us, one can hope the summer grind will not be mirrored by our economy.”
Residential construction permit activity was higher for the month, up 45 percent, but year-to-date numbers are 25 percent lower than last year. Home sales were up slightly in May, rising 2.4 percent from last year.
The May unemployment rate — 7.7 percent — was unchanged from a year ago, but total non-farm headcounts were again lower overall for the month.
No sector reported improvement from May 2011. The total number of non-farm jobs in the Fort Smith region declined by 4.3 percent, or 5,000 jobs, from a year ago, based on Bureau of Labor Statistics non-seasonally adjusted data.