The Mobile Economy
Center for Real Estate Studies
http://cres.southalabama.edu
Period ending June, 2010
The Mobile Business Activity Index (MBAI)
The Mobile Business Activity Index is a good indicator of Mobile business activity. It includes employment for
10 employment clusters weighted by each industry’s personal income-per-worker. It measures the ability of the
local worker to buy local goods and services.
Shown below is current selected data from the local residential market. Residential investment should lag and
then follow the direction of the MBAI as the worker must have good family income and confidence to buy
housing.
MBAI through June, 2010
Analysis: The May MABI shows that the economy is performing at a level comparable to January
2005. The employment clusters are ranked by size of the workforce to show their relative importance to
economy. The top six clusters account for 81 percent of the 172.3 total non-farm employees in June. Only two
of the top six declined in June. Education and Health Services remained the same Professional and Business
Service showed an increase of 300 workers from May to June even through the total June number is down 1.9
percent over the last 12 months. Manufacturing increased by 100 workers, also. The net increase of 100
workers caused the MBAI to increase to a new level of 93.2. The Government cluster showed the largest
decline of 200 employees from May, or -1.8 percent from the same period one year ago. The largest cluster of
Trade, Trans, and Utilities declined 100 workers. The U.S. Department of Labor views industries that remain
the same in employment as a positive factor as income is still being produced into the economy. Two clusters,
Education & Health Service, and Information remained the same between May and June. In sum, between
May and June, the local economy grew by 200 employees. Added to the 1000 new employees between April
and May, the local MBAI increased by +.54 percent.
Mobile 10 Employment Clusters
Rank
Mobile Employment Clusters
%
1
2
3
4
5
6
Trade, Trans, & Utilities
Government
Education & Health Service
Prof & Business Service
Leisure & Hospitality
Manufacturing
Sub-Total
Mining, Logging, Construction
Other Services
Financial Activities
Information
Total
21.9%
16.0%
13.5%
12.0%
9.2%
8.4%
81.0%
7.5%
5.2%
5.0%
1.3%
100.0%
7
8
9
10
Non-farm Employees
May (000’s) June
37.9
37.8
27.6
27.4
23.0
23.0
20.3
20.6
16.0
16.0
14.4
14.5
139.2
139.3
13.0
13.1
9.0
8.9
8.6
8.7
2.3
2.3
172.1
172.3
% Change vs. 12
Months Earlier
-1.6
-1.8
0
-1.9
1.9
-3.3
-3.0
-1.1
-6.5
0
-1.7
Residential Investment: The residential market serves as an important indicator of consumer attitudes,
expectations about the future economy, and job stability. Selected indicators provide a good cross-sectional
view of residential capital investment in Mobile,
Actual Sales
Month’s Inventory
Residential for Sale
Single Family Permits
Sales Under $200,000
July Number
Direction
274
14.4 months
3941 listings
8 (May)
225
- Decline
- Increase
- Increase
- Decline
- Decline
Analysis: The Mobile residential market showed a decline in June. The number of month’s to sell the existing
inventory of listings, 3941, increased to 14.4 months which is movement in the wrong direction. The number of
listings has reached a new high since Katrina. Single family permits remain low. The number of sales in the
predominant market of under $200,000 dropped slightly, but remains steady.
These indicators will lag and then follow the MBAI. This primary price range remains under $200,000, sales
need to increase, permits need to increase, and the existing inventory of properties for sale needs to be
lowered.
For additional information, contact: Dr. Don Epley, Director, Center for Real Estate Studies, Mitchell College
of Business, University of South Alabama, Office: 251.460.6735, E-mail: depley@usouthal.edu.
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.