The Compass Report: Economic gains continue in the third quarter
The construction sector again was a strong part of Arkansas’ top four metro areas, with the regions continuing to see economic gains in the third quarter of 2024, according to the latest The Compass Report.
In the third quarter 2024 (July-September) report, Central Arkansas received an “B” grade, the Fort Smith metro had a “A” grade, the Jonesboro area received a “C” grade, and Northwest Arkansas had a “A” grade.
The Compass Report is a partnership between the University of Arkansas at Fort Smith (UAFS) and Talk Business & Politics. First National Bank of Fort Smith is a sponsor of the statewide report.
Kendall Ross, UAFS associate vice chancellor of Economic and Workforce Development, and Troy Rodriguez, a data analyst in the UAFS Center for Economic Development who helps compile, manage and review the data, are responsible for data collection and written analysis for the report.
The report measures four leading and four current economic indicators to provide a grade for a regional economy. The eight categories measured to determine The Compass Report grade in the Central Arkansas, Fort Smith and Northwest Arkansas areas are total nonfarm jobs, unemployment rate, building permits, sales tax revenue, manufacturing jobs, service sector jobs, construction jobs, tourism jobs and concentration of manufacturing jobs. Because the data is not available, construction and tourism jobs are not included in the Jonesboro metro grade.
A key factor in understanding the report is in understanding the “grading” approach used to measure the current and leading economic indicators. For example, a grade of “C” reflects no change in economic activity. The grades “B” or “A” indicate improvement above the historical average, and “D” and “F” indicate a decline in economic activity compared to the historical average.
TOP TAKEAWAYS
Following are some of the key takeaways from Ross and Rodriguez included in The Compass Report.
• Central Arkansas
The Central Arkansas metro demonstrated strong economic growth in Q3 2024, with impressive gains in nonfarm employment, manufacturing, and construction sectors. However, challenges remain in tax collections and the hospitality sector. The region’s overall performance earned it a B grade, reflecting solid progress with areas requiring continued attention.
• Northwest Arkansas
Northwest Arkansas continued to show resilience and steady economic expansion in Q3 2024. Strong job growth in manufacturing, construction, and hospitality sectors supports the region’s positive trajectory, while gains in tax collections signal continued consumer activity. However, labor market challenges and variability in building permit activity highlight areas for ongoing monitoring. Overall, Northwest Arkansas earned an A grade for the quarter, reflecting its continued strength and economic stability.
• Fort Smith metro
While the region made substantial gains in employment and demonstrated strong performance in key sectors, tax collections remain an area of concern. 
The overall economic performance of the Fort Smith metro area in Q3 2024 is encouraging, with strong employment gains, robust growth in the goods-producing sectors, and declining unemployment. The region’s performance earned an A grade for the quarter, signaling continued progress and resilience in the face of economic challenges.
• Jonesboro metro
While improvements in unemployment and growth in construction activity offer encouraging signs, Jonesboro’s sluggish nonfarm employment growth and declining tax collections continue to present challenges. Overall, the region earned a C grade for Q3 2024, reflecting moderate struggles but with potential for improvement.
DATA AND MORE ANALYSIS
Link here for the third quarter 2024 raw data gathered by the University of Arkansas at Fort Smith Center for Economic Development.
Link here for the quarterly narrative and more analysis. Also, link here for the previous reports.