Economys Hopeful Signs

Economy Showing Hopeful Signs, But Still No Indications of Sustained Recovery or Employment Growth NYSAC’s economy watch breaks down the latest numbersThe January 2010 edition of the NYSAC Economy Watch continues to show hopeful signs of economic recovery but private sector jobs continue to decline. Of significant note, our unemployment numbers increased in every county but one, as employers began to reduce seasonal holiday hires.The New York State Business Barometer, the Index of Coincident Economic Indicators (ICEI), fell for the 5th consecutive month. The Index has now fallen 14 of the last 15 months.“New York has historically entered periods of recession later than the nation, but usually remains in economic decline almost twice as long as the rest of the country,” said NYSAC President Tom Santulli. “Unfortunately it appears that this trend is holding up in this recession. While we may have hit bottom, we haven’t started to climb out of this slump yet.”The Chemung County Executive renewed NYSAC’s call for stronger strategic statewide economic development plan that fosters job creation and plays to the unique strengths of each of New York’s regions.The number of Private Sector jobs in New York declined by 0.1% from the previous month according to the monthly employment report of the New York State Department of Labor, Division of Research & Statistics. New York’s private sector jobs have declined by 2.1% from a year ago.In a sign of optimism, the real estate market appears to have stabilized in New York, with modest sustained growth in sales and prices reported in the second half of 2009. The sales of single family homes, as reported by the New York State Association of Realtors Monthly Housing Survey, fell from the previous month but have grown 21% since a year ago. The median sales price of a single family home rose 8.5% since November and 3.3% overall since a year ago.The results of the monthly Empire State Manufacturing Survey, issued by the Federal Reserve Bank of New York, exhibited improving business conditions for the state’s manufacturers for the 6th consecutive month. Indices measuring new orders, shipments, prices received, and employment all increased for the month. The Future Activity Index, measuring manufacturing CEOs’ projections of business conditions in the next 6 months continued to increase, exhibiting a high degree of optimism for the future by the state’s manufacturers.Consumer Confidence, an indicator measuring consumers’ willingness to spend issued each month by the Siena Research Institute and the University of Michigan, increased in January rising by 2.8 points for the month. The State’s overall consumer confidence, at 68.6, still lags behind the National confidence level of 74.4, but it has exhibited an overall upward trend since June of 2009.“The focus of all federal, state and local leaders must be on creating an environment that will enable our communities to recover from this economic crisis, and re-emerge from a position of strength. We must reduce the cost of government, rein in property taxes and attract innovative businesses, especially emerging industries,” said Stephen J. Acquario.The New York State Association of Counties is a bipartisan municipal association serving all 62 counties of New York State including the City of New York. Organized in 1925, NYSAC’s mission is to represent, educate and advocate for Member Counties and the thousands of elected and appointed county officials who serve the public.