Fort Smith Regions Economy Mixed Bag in First Quarter 13

Fort Smith needs continued job growth and improved home and retail sales to get the region’s economy on a stronger footing, according to a recent report from the Center for Business Research and Economic Development at the University of Arkansas at Fort Smith.

The report covers the first quarter of 2013, and includes regional economic indicators and consumer sentiment.

“It’s been difficult to get the regional economy firing on all cylinders,” CBRED director Kermit Kuehn wrote in the report. “The recent Health Management Associates announcement of 500 jobs is the kind of news we need more of.”

The report shows auto sales, residential building permits and overall employment numbers have improved over the first quarter of 2012.

On the other hand, retail and home sales were down, along with airport traffic. Unemployment also rose slightly.

All figures in the report except for auto sales are for the Fort Smith Metropolitan Statistical Area, which comprises Sebastian, Crawford and Franklin counties in Arkansas and Le Flore and Sequoyah counties in Oklahoma.

The number of residential construction permits issued rose 22.4 percent from the same period a year ago. The average value of those permits rose 17 percent, from $12.23 million to $14.31 million.

While total employment in the MSA grew by 367 jobs, the total labor force shrank, resulting in a slight rise in the unemployment rate. The transportation and utilities sectors added the most jobs, while manufacturing lost the most.

Consumers in the Fort Smith region were a bit more optimistic in March than they were in December, when the Index of Consumer Sentiment for the MSA dove sharply. However, March’s index of 58.4 is still slightly below the 59.3 reported in March 2012.

Kuehn will present highlights from the report at the Fort Smith Regional Economic Outlook Forum at 11:30 a.m. July 10 in the Smith-Pendergraft Campus Center Reynolds Room. Copies of the report will be available to forum participants.