Alabama Coastal Economy Center for Real Estate and Economic Development Period ending December, 2013 Report found at http://creed.southalabama.edu Mobile is the Economic Engine for Coastal Alabama Three views of the Coastal Alabama economy provide a good cross-sectional analysis of the direction and strength of future activity. The Mobile Business Activity Index (MBAI) is an approximation of economic growth. It tracks employment for 10 NAICS industrial classifications weighted by each industry’s personal income-per-worker. It shows the level of workforce spending power in the economy. The index decreased by 0.29 percent from December, 2012, to December, 2013. MBAI and Moving Average Index January 2006 - December 2013 3 Month Moving Average 104 102 100 Index 98 96 94 92 90 88 86 2006 2007 2008 2009 2010 2011 2012 2013 Employment: According to the latest labor statistics, the civilian labor force was 184,787 in November, 2013. The number of workers employed decreased by 1.12 percent since November, 2012, and the number of unemployed workers decreased by 12.05 percent in the same period. The latest unemployment rate is 6.5 percent for November, which decreased by 10.96 percent, or from 7.3 to 6.5 percent in the same period. Employment in the top six clusters driving the Mobile economy increased by 0.84 percent from last year. Employment in the remaining four clusters decreased from 32,200 to 31,000, a 3.73 percent change. During this time period, the largest increase in employment occurred in the Leisure & Hospitality cluster, increasing from 15,300 to 15,800 in December, 2013, a 3.3 percent change. Overall, there was no change in employment for all clusters since December, 2012. Rank Mobile Employment Clusters % 1 2 3 4 5 6 Trade, Trans, & Utilities Government Education & Health Services Prof & Business Services Manufacturing Leisure & Hospitality Sub-Total Mining, Logging, Construction Financial Activities Other Services Information Total 21.8% 14.2% 14.0% 12.3% 10.9% 9.0% 82.2% 5.9% 5.6% 5.2% 1.1% 100.0% 7 8 9 10 Non-farm Employees Dec‘12 (000’s) Dec‘13 37.5 38.2 25.5 24.9 24.4 24.5 21.6 21.5 18.5 19.1 15.3 15.8 142.8 144.0 11.6 10.3 9.5 9.7 9.1 9.0 2.0 2.0 175.0 175.0 % Change vs. 12 Mos. Earlier 1.9 -2.4 0.4 -0.5 3.2 3.3 -11.2 2.1 -1.1 0.0 Residential Investment: The residential market serves as an important indicator of consumer attitudes, expectations about the future economy, and job stability. Since December, 2012, the Mobile housing market has increasing sales, decreasing median sales price, and decreasing month’s-to-sell inventory. The highest volume of sales remains under $200,000. December, 2013 Total Sales Month’s-to-sell Inventory Average Sales Price Median Sales Price Sales Under $200,000 288 9.96 months $137,462 $106,750 234 Direction increase decrease increase decrease increase The Future: The immediate future for the Coastal economy lies in two areas. The first is continued economic development successes. . The second will be the concurrent decline in foreclosures and general return to normal demand and supply conditions in the market. Some activity has been seen recently in higher priced housing which is a good sign of increased consumer confidence. . For additional information, contact: Dr. Don Epley, Director, Center for Real Estate and Economic Development, University of South Alabama, Office: 251.460.6735, E-mail: [email protected] Data gathered by: Michelle Pinochet, MBA student - Senior Research Analyst University of South Alabama takes reasonable measures to ensure the quality of the data and other information produced. However, USA makes no warranty, express or implied, nor assumes any legal liability or responsibility for the accuracy, correctness, or completeness of any information, nor represents that its use would not infringe on privately owned rights. Reference to any specific commercial product, process, or service does not constitute an endorsement, recommendation, or favoring by USA.