May 2016 Press Release

Tallahassee Job Market Struggles in May, but Real Estate Strengthens

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:

• Adverting sales jumped 96.65 percent from May 2015
• Home Furniture, Furnishings, and Equipment sales moved up almost 17 percent from last year
• Graphic Arts, Printing, Publishing, Engraving, Binding and Blueprinting sales increased 11.61 percent MoM and 14.40 percent YoY
• Pawn Shop sales rose 18.61 percent YoY
• Shoe Store sales fell 25.04 percent MoM
• Apparel and Accessory Store sales dropped 21.54 percent MoM
• Drinking Places sales surged upward 20 percent MoM and 20.26 percent YoY
• Airport Traffic posted a MoM gain of 6.67 percent