December 2018 Press Release

No December to Remember for the Local Economy New Construction Permits and Business Spending Lead Decline

Tallahassee, FL – The Tallahassee Economic Index (TEI), the city’s top economic growth indicator, today released numbers ending December 2018. Following a .75 point slide in November, the Index fell .65 points from 36.21 to 35.56 in December.

“The Index saw another month of slight deceleration in December. Business spending categories like Advertising, Office Equipment and Supplies saw double digit declines compared to December of 2017." said TEI Founder Brett F. Ewing. “The data was not all negative. Local consumers were the shining stars in the data this month. Spending in multiple consumer spending categories spiked during December. On top of that, Initial Claims for Reemployment Assistance moved back towards record lows, showing the strength of the local job market.”

“The index stalled in December, signaling growth in the capital city is stable, but flat lining,” said Lance Mitchell, Director of Research at the TEI. “While housing inventory remains low, new construction permits continued its slowing trend & building material sales are finally starting to fall, giving us pause on the future growth of the residential market. While the continued stalling of the index is somewhat worrisome, it is really just mimicking the national economy which is still seeing growth, but that growth is slowing.”

• Airport Traffic descended 11.76 percent from last month, but climbed 10.63 percent from one year ago
• New Construction Permits crumbled 44.44%from the prior month, and 77.78 percent from one year ago
• Initial Claims for Reemployment Assistance got to work moving down 11.36 percent MoM, and 24.17 percent YoY
• Realtor Sales closed higher by 23.37 percent higher than November, and were unchanged from December of last year
• Lumber Sales fell 14.10 percent MoM, but climbed .71 percent compared to last December