The Fort Smith regional economy continued to post improved numbers in August, according to the report released Oct. 2 by the Center for Business Research and Economic Development (CBRED) at the University of Arkansas - Fort Smith.

 

The August Monthly Economic Indicators Index report reveals an area economy that is performing noticeably better than a year ago at this time, according to Dr. Kermit Kuehn of Fort Smith, CBRED director. The overall Economic Activity Index for July (the latest available due to the lag in retail sales data) of 96.4 was up from the 94.4 of a year ago.

 

According to the report, retail sales for July, which was the latest data available, came in well ahead of a year ago at nearly 11 percent higher than July 2012. The surge in retail activity in July for the MSA pushed year-to-date sales into positive territory for 2013.

 

"Retail sales have been sluggish for much of the year so far," Kuehn said, “so this month’s burst of activity is most welcome.”

 

New and used auto sales continued to demonstrate consumer demand with sales up 2.5 percent over August 2012, boosted again by new car sales. Kuehn noted that new-car unit sales were nearly 4 percent higher than the previous five-year average, while used-car unit sales were up just over 1 percent.

 

Total non-farm employment for the Fort Smith MSA of 118,700 people employed reflected 2,400 more jobs in the five-county Fort Smith Metropolitan Statistical Area (MSA) than what was reported in August a year ago. The unemployment rate for the region for August was unavailable at the time of this report.

 

"We only get half the jobs picture this month due to the federal government shutdown, which took effect on Tuesday," Kuehn said. He noted that the non-farm data came out prior to the shutdown, but unemployment rate data were scheduled to be released Wednesday morning.

 

August home sales for the MSA rose again, up 29.1 percent from a year ago. The results follow a very strong July performance when unit sales rose over 40 percent from 2012 levels. The average price of a home was 4 percent higher than a year ago at $130,834 per unit.

 

Kuehn indicated that the strong turnaround in home sales may be partially attributed to the volatility in mortgage interest rates observed in recent weeks. He suggested that rising rates move some buyers to lock in rates fearing they will miss the most favorable terms if they wait longer. The next few months will reveal whether the uptrend is sustainable, he said.

 

The strong showing in home sales was not supported by August residential construction. The report revealed that 24 residential construction permits were pulled for the month, slightly below the 27 units of a year ago. However, the number of permits for 2013 is still up nearly 20 percent over 2012, buoyed largely by a large batch of multi-family permits pulled in April.

 

Airport traffic numbers came in higher again in August, the third month in a row of year-over-year improvement. Passenger traffic for the month was up 6 percent, but traffic for the year remains 2.5 percent below a year ago at this time.

 

The report is sponsored by Arvest Bank. For more information on the center, go to business.uafs.edu/outreach/economic-development, call 479-788-7938 or email CBRED@uafs.edu.