The Mobile Economy
Center for Real Estate Studies
http://cres.southalabama.edu
Period ending May, 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
follow the direction of the MBAI as the worker must have good family income to buy housing.
MBAI through May, 2010
Analysis: The May MABI shows that the economy is performing at a level comparable to August, 2004.
The local workforce grew by 1000 workers from April to May which caused an increase of .47 percent
in the Index.
The employment clusters are ranked by size of the workforce to show their relative importance to the metro
economy. The top six clusters account for 81 percent of the 172.0 total May employees. Four of the top six
declined in May from the same month, 2009. Education and Health Services remained the same, Leisure and
Hospitality showed a modest increase of +1.3 percent. The Financial Activities cluster showed the largest
decline of - 9.5 percent followed by Professional and Business Service with -4.7 percent followed by
Manufacturing, and Mining, Logging, and Construction.
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
May Employees
(000’s)
37.8
27.6
23.0
20.3
16.0
14.4
139.1
13.0
9.0
8.6
2.3
172.0
% Change vs. 12
Months
- 1.6
- 0.4
0.0
- 4.7
1.3
- 2.7
- 2.3
- 2.2
- 9.5
0.0
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,
May Number
Actual Sales
Month’s Inventory
Residential for Sale
Single Family Permits
New Construction Sales
Sales Under $200,000
366
10.3 months
3766 listings
8 (April)
56
258
Direction
+ Good
- Good
+ Increase
- Decline
- Decline
Analysis: Actual sales showed an increase in May. The number of month’s to sell the existing inventory of
listings, 3766, dropped to 10.3 months which is movement in the right direction. Single family permits remains
low, and sales of new construction is a healthy 56. The predominant market of under $200,000 dropped
slightly, but remains steady.
These indicators 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
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