The State economy fared better. Its monthly year-over-year growth rate increased for the first time since March. Three of four available indicators were up from prior year. The labor market showed signs of improvement; the monthly year-over-year growth rate of number of employed residents rose two months in a row after falling four straight months. The hospitality industry seemed to have done better as well; estimated rooms and meals revenues remained up from a year earlier. However, the manufacturing sector contracted; the monthly year-over-year growth of industrial electricity sales fell for the first time since the end of the latest recession. The weakening manufacturing sector became a drag on the economy.
The real estate market analysis can be found at the end of this report.
The November report reflects the traffic counts series, which was revised to improve its conformity to the business cycle. In October, the Coos economy showed encouraging signs for recovery. The Coos Index was up from where it stood a year ago for the first time since April. The labor market seemed to have gained some strength; the number of employed residents expanded two months in a row on a year-over-year basis. The hospitality industry did better than a year ago, although it wasn’t nearly enough to boost the business owners’ confidence in the industry. Both the estimated rooms and meals revenues and the average Saturday vehicle traffic counts marked higher than where they were a year ago. The only blemish in the news was the housing sector. Home sales remained nearly half the October 2009 level.
Likewise, the revised data revealed that the State economy remained strong. The State Index advanced for the seventh month in a row on a year-over-year basis. For the second consecutive month, it posted a 1.7% gain, the largest since the beginning of the recession. The steadily improving labor market was most impressive. The number of employed residents expanded six months in a row on a year-over-year basis at an increasing pace. However, the stumbling housing market remained as a threat to recovery. Home sales took a step backward after having recovered from hiccups after the expiration of the federal home buyer tax credit.