Local Economy Grows in Q2

Northwest Arkansas region experienced marginal but positive growth during the second quarter of 2007.

Kathy Deck, director of the Center for Business and Economic Research at the  Walton College of Business, presented state and regional economic figures during the Quarterly Business Analysis held Aug. 16 in Fayetteville.

Deck said the relatively flat growth rates for the second quarter continue to indicate growth throughout the state, just not at the same speed as in years past.

From July 2006 to July 2007, the Fayetteville-Springdale-Rogers metropolitan statistical area gained nearly 5,000 of the state’s 11,000 new jobs.

The growth rate equates to nearly 425 to 450 new jobs each month for the region.

While the state saw only a 0.7 percent increase in non-farm employment during the past year, the Fayetteville-Springdale-Rogers MSA recorded a 2.4 percent growth from June 2006 to June 2007.

Industry growth varied by region, but statewide the natural resources and mining sector saw nearly 14 percent growth, due in large part to the Fayetteville Shale Play.

Manufacturing was the one employment sector that saw negative growth in all parts of the state.

For Northwest Arkansas’ MSA, the financial activities sector once again saw the largest leap in growth with a nearly 5 percent gain over the past year.

Along with the increase in new jobs, the Northwest Arkansas region also saw an increase in new residents with nearly 1,000 people relocating to the area each month, Deck said.