May 2017 Press Release

Consumer, Business Spending Slow, While Real Estate Remains Rock Solid

Tallahassee, FL – The Tallahassee Economic Index (TEI), the city’s top economic growth indicator, today released numbers ending May 2017.The numbers showed categories like Advertising, Office Supplies, Pawn Shops and Drinking Places had a rough month in May. This was counterbalanced by the strength seen in other inputs like New Construction Permits, which are having a banner year.

“The Index was essentially flat in May. After April broke the two month downward move, it couldn’t keep its momentum.” said TEI Founder Brett F. Ewing. “The May numbers showed a return to the same trend seen for most of the year. Real estate leads while consumer and business spending are stagnate.”

The Index saw a modest drop of .02 points, from 51.06 in April to 51.04 in May.

“We will have to wait until June to see if the TEI can build on the traction it gained in April, since May was surprisingly flat,” said Lance Mitchell, Director of Research at the TEI. “While local retail spending remains weak, Tallahassee residents should feel especially good about their house and their job as median sales price remains near all-time highs and unemployment near all-time lows.”

• New Construction Permits jumped by 61.54 percent from April to May and 68 percent from last May
• Median Home Sales Prices were boosted by 8.43 percent MoM and are 11.07 percent higher YoY
• Realtor Sales grew by 20.85 percent from last month and by 4.3 percent from last May
• Airport Traffic advanced 9.11 percent MoM and .71 percent YoY
• Initial Claims for Reemployment Assistance increased 29.69 percent from April and declined 7.98 percent from May 2016
• Drinking Places sales declined for the third month in a row, contracting 8.92 percent from April to May and 29.97 percent compared to last May