Press Room
You Are Here:
December Economy Watch Shows State Economy at Crossroads
January 11, 2010
The Economic Indicators contained in the December Edition of the NYSAC Economy Watch seem to indicate NY has bottomed out with respect to economic decline and the state now has a chance to address renewed growth. Events occurring in Washington and Albany over the next year, as the Federal and State Governments cope with the effects of the sharpest economic downturn since the great depression, could have significant impact on what path New York proceeds down in the months ahead: renewed growth or continued economic stagnation and decline.
“The economy is showing signs of improvement but what the legislature and the Governor do in the next few months in getting the State’s fiscal house in order will have a significant impact on what path the economy takes in the year ahead,” said NYSAC President Tom Santulli, Chemung County Executive. “The state needs a renewed focus on growth or we will fall back into economic decline with further job losses and continuing increased burdens on counties to provide services to those in need.”
New York’s Business Barometer, The Index of Coincident Economic Indicators (ICEI) fell for the 4th consecutive month in November dropping .24 points since October. The ICIE has fallen just .75 of a point since June, after 9 consecutive months of steep decline when the ICIE fell over 4 points.
Consumer Confidence, as measured by indicators generated by the Siena Research Institute and the University of Michigan showed increasing consumer confidence nationally but a degree of hesitancy about spending in New York.
The State’s Unemployment Rate (before seasonal adjustment), fell to 8.4% in November, significantly below the national unemployment rate of 9.4%. A total of 38 of New York’s 62 counties had their unemployment decline or remain stable from the previous month. Only 3 counties in New York exceed the national unemployment rate.
Consumer prices increased by 0.2% from last month for both the New York City Metropolitan Area and the Northeast Region. Increases in prices for gasoline and personal care products primarily drove the monthly increase.
Housing Sales as reported by the New York State Association of Realtors, decreased 5.6% for the month but were up 34% from a year ago.
Private Sector Jobs increased 0.2% since last month’s report by the New York State Department of Labor’s Division of Research and Statistics representing a modest increase of 14,000 jobs statewide. Private sector jobs have decreased by 2.4% since November of 2008 representing the loss of over 211,000 jobs.
General Business Conditions as measured by the Empire State Manufacturing Survey of the Federal Reserve Bank of New York leveled off in December following 4 months of significant improvement.
"Private sector job growth is critical and the state should empower counties with the necessary tools to foster job growth," said Stephen J. Acquario. "We need all levels of government coordinating on a solution and not just communicating a problem".
For more on the December Economy Watch, visit our website at www.nysac.org.
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.
###