April 2018 Press Release

Local Economy Continues Deceleration Spending Slows in Multiple Areas Creating an Unwelcome Trend for 2018

Tallahassee, FL – The Tallahassee Economic Index (TEI), the city’s top economic growth indicator, today released numbers ending May 2018. Following a 2.98 point slide in April, the Index moved lower by 4.21 points from 42.73 to 38.52 in May.

“May’s index readings came in unfavorable again. We are seeing spending decrease by local consumers and businesses, as indicated by things like apparel and shoe sales and office equipment/supplies. We are also seeing our leading indicator for future construction projects start to flounder, ” said TEI Founder Brett F. Ewing. “ If you want to look on the bright side, the Tallahassee International Airport saw its eighth straight month of seasonally adjusted growth. This is the second time since the airport went international that it has had a streak this long.”

“For only the third time in the history of the TEI, we have experienced five straight months of negative numbers, with May being the largest decline of that streak,” said Lance Mitchell, Director of Research at the TEI.“Bad news abounds with initial claims for reemployment hitting roughly two-year highs and housing sales price growth moderating to a crawl. The number of categories providing positive momentum shrunk during this downturn, meaning positive growth in our local economy looks to be at a tipping point.

• Lumber Sales grew by 3.21 percent from April to May, and by 10.20 percent from May of 2017 to May of 2018
• Initial Claims for Reemployment Assistance climbed by 31.14 percent MoM, and 5.54 percent YoY
• Realtor Sales rebounded, gaining 39.13 percent from April, and 5.54 percent from a year ago
• Median Existing Home Sales Prices gained 2.21 percent MoM, and 1.45 percent YoY
• Airport Traffic continued to advance 4.65 percent from last month, and increased 12.19 percent from May of last year
• New Construction Permits slumped 23.53 percent from April, and 38.10 percent from last May