Tallahassee’s Economy Feels the Heat in July Employment and New Construction Permits Drag

Tallahassee, FL – The Tallahassee Economic Index (TEI), the city’s top economic growth indicator, today released numbers ending July 2018. Following a 1.06 point move up in June, the Index decelerated .41 points from 39.58 to 39.17 in July.

“The July index reading saw a return to the slow growth trend that we have seen for six out of seven months so far this year. Last month the index saw a slight boost in economic vitality, but that was indeed short lived.” said TEI Founder Brett F. Ewing. “On a brighter note, once again airport traffic saw a solid month of seasonally adjusted growth. July saw a 14.85% boost in traffic from July of 2016. Marking the tenth month in a row of double digit year over year growth.”

“Much like the vast majority of months in 2018, the Index had another muted move down in July, as economic growth continues to flatten in the capital city,” said Lance Mitchell, Director of Research at the TEI. “Consumers held strong with apparel & accessory, home furniture & furnishings, and appliances all growing on an annual basis, but some of our weightier categories continued a weaker trend in July with initial claims, new construction permits, and single family median sales price all posting weak months. While a flattening number isn’t a huge recessionary concern, it is hard to see what will provide the next leg of growth to push the index higher.

• New Construction Permits slipped 30.56 percent from June, and also 43.18 percent from last July
• Initial Claims for Reemployment Assistance jumped back up by 21.68 percent MoM, and 7.67 percent YoY
• Realtor Sales slid 7.99 percent from June, but advanced 4.7 percent from a year ago
• Median Existing Home Sales Prices lost 10.23 percent MoM, but crawled up .21 percent YoY
• Airport Traffic reversed 1.91 percent from last month, but continued its YoY gains again, accelerating 14.85 percent from July of last year
• Lumber Sales dipped 3.33 percent MoM, and gained 9.84 percent YoY