Economist Strikes Positive Tone as 2012 Draws to a Close

University of Arkansas economist Kathy Deck said Thursday that the region’s economy continues to show signs of slow and steady growth.

Deck, the director of the Center for Business and Economic Research at the Sam M. Walton College of Business, was speaking to about 100 business and community leaders who attended the quarterly business luncheon at the Donald W. Reynolds Center for Enterprise Development on the UA campus.

The program touched on a variety of statistical highlights from the third quarter of 2012, key economic trends and projections, and immediate and long-term issues facing the regional and state economy.

“The good news is that I’m going to get to talk about good news,” Deck said. “It’s hard to complain with the numbers that we’re seeing.”

Among the highlights are consumer sentiment levels that are heading in the right direction, Deck said.

“Consumers have regained much of their confidence,” she said. “People are feeling a little bit better about their job prospects, home values, stock portfolios, all those things. And they are willing to spend.”

Deck also noted “really fantastic” employment growth, speaking about the continued decline in the jobless rate in Northwest Arkansas. The unemployment rate was at 4.9 percent in September, the first reading below 5 percent in four years.

“That provides confidence to our leaders that this is a thriving community,” she said. “It represents prosperity in the region.”

Deck also addressed the upcoming U.S. presidential election at the beginning of the program.

“I’ll go ahead and answer this question before you have a chance to ask it; how will the election affect the economy?” she said. “Slow and steady recovery trends are baked into the cake at this point. Going forward, in the short term, it’s not going to have that much of an impact.”

Deck did add that small businesses, however, are feeling the uncertainty of the election.

“Without any set rules, they’re making defensive moves right now about hiring and spending and things like that,” she said. “Small businesses will show more reaction to the election.”

The cost for the QBA program and luncheon is $35 and reservations can be made online http://cber.uark.edu/ or by calling (479) 575-4151.

The program is a partnership between the CBER and area chambers of commerce.