Local Index: Growth Slow, but Underlying Economic Fundamentals Remain Solid
Tallahassee, FL – The Tallahassee Economic Index (TEI), the city’s top economic growth indicator, today released numbers ending May 2016 which show a struggling job market, but a strengthening real estate sector.
Overall the index fell 4.88 points to 53.10, which follows a 4.94 point drop in April and a 7.98 point gain in March.
“The TEI experienced its second consecutive drop during the month of May. The decline is primarily due to the Initial Claims for Reemployment Assistance rising over 30 percent from the prior number in April. This is the largest one month, upward move for this indicator in over a year. While one month does not make a trend, we will continue to monitor this input, as it is the largest and most important in the index,” said Lance Mitchell, Director of Research at the TEI.
“We also saw a shift in real estate, away from new construction and towards more purchases of existing homes. New construction permits dropped over 28 percent from last month and over 40 percent from last year, while realtor sales jumped double digits in the same time frame. Affirming the strength in the existing homes market, we saw the median sales price for existing single family homes rise again, up over six percent on the year. This is yet another good sign that while growth is slow, the underlying fundamentals of the local economy remain on solid footing,” said Mitchell.
Other highlights this month include: