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Home > BizTimes Daily > Archives > September 5, 2008
MMAC says local economy remains sluggish
Published September 5, 2008 - BizTimes Daily
Only six of the 19 available July indicators of metro area economic activity registered improvement from year-ago levels, according to the latest report by the Metropolitan Milwaukee Association of Commerce (MMAC).
July marked the ninth consecutive month in which less than half of the indicators tracked by the MMAC showed improvements. July's total matches the revised number of improved indicators recorded for June.
"A sluggish employment trend continues to be the principle drag on the local economic environment," said Bret Mayborne, economic research director for the MMAC. "Year-over-year job declines were posted both in the metro area and nationally in July across a majority of major industry sectors."
Highlights of the latest report include:
Nonfarm employment levels in the metro area fell at a 0.4-percent pace in July, smaller than the 1.1-percent decline recorded in June (vs. one year ago), but somewhat steeper than July's 0.1-percent job decrease for the nation as a whole.
Four of 10 major industry sectors registered July job gains (vs. one year ago), while six posted declines. The largest percentage increase was posted in the government sector (each up 3.6 percent over year-ago levels). Conversely, a 3.9-percent job decline was posted in the construction, mining & natural resources sector, the largest decrease registered.
A mixed trend was registered among metro area unemployment indicators. The number of unemployed fell 4.1 percent in July (vs. July 2007) to 41,700, but new unemployment compensation claims rose significantly, up 63 percent (vs. year-ago levels), the sixth year-over-year increase in the first seven months of 2008.
Local area housing and real estate indicators continued to slide. Existing home sales in the metro area fell 8.8 percent (to 1,207), but July's percentage decline was the smallest posted in almost one year (since August, 2007). Mortgages recorded in Milwaukee County fell at a 29.4-percent pace to 3,557.
New-car registrations posted a 1.8-percent decline in July (to 3,420), following a 15.9-percent fall in June.
The value of signed construction contracts, as reported by F.W. Dodge for June, was $118.3 million, down 6.3-percent from June, 2007.
The Milwaukee area consumer price index for urban consumers (CPI-U) reached 201.955 for the first half of 2008, a 4.8-percent increase from the first half of 2007.
