Southeastern Wisconsin economic indicators continue to operate at a high level, with nearly three-quarters of local factors tracked by the Metropolitan Milwaukee Association of Commerce (MMAC) pointing in a positive direction in February.
Seventeen of 23 February MMAC indicators improved over year-ago levels, matching the number of positive indicators recorded in January.
“The wide breadth of indicators trending upward suggests that the local economy currently lacks an obvious weak spot,” said Bret Mayborne, the MMAC’s economic research director. “Metro area job gains though have been modest in recent months running below the trend established over the past two years.”
Non-farm employment averaged 834,700 in February, a 0.7 percent increase from year-ago levels. February’s increase is down from the revised 1.1 percent gain posted in January (vs. January, 2014) and ranks below the 1.3 percent average year-over-year increase registered over the past two years.
Seven of 10 major industry sectors recorded February year-over-year job gains. The financial activities sector posted the strongest gain (up 3.3 percent) while the leisure & hospitality sector recorded the steepest decline (down 4.9 percent).
Local housing and real estate indicators rebounded from January weakness. Metro area existing home sales rose 2.5 percent in February (vs. one year ago) while mortgages recorded in Milwaukee County increased at a 15.8 percent rate (vs. February, 2014).
Metro Milwaukee’s seasonally unadjusted unemployment rate fell vs. year-ago levels for the 16th consecutive month. February’s rate fell 1.3 percentage points from one year ago to 5.6 percent. Metro Milwaukee’s rate ranks under the 5.8 percent recorded for the nation as a whole but is slightly higher than Wisconsin’s 5.5 percent rate.
The number of unemployed fell by a double-digit rate for the 11th month in a row, down 19.1 percent from February, 2014, to 46,200. New unemployment compensation claims fell 15.5 percent in February, this indicator’s 16th year-over-year decline in the past 17 months. Employment in the metro area rose at a 0.7 percent pace in February, to 834,700, down from the revised 1.1 percent gain registered in January (vs. January, 2014). While February’s increase marks the 53th consecutive year-over-year gain, it also represents the fourth consecutive month in which job growth has failed to reach the two year growth average (+1.3 percent).
Among the three sectors with February job declines, the steepest decrease was registered in the leisure & hospitality sector, down 4.9 percent. Employment declines were also posted in the information (down 1.4 percent), and trade, transportation & utilities (down 0.7 percent) sectors.
Manufacturing related indicators were mostly positive in February. Manufacturing job levels rose at a 0.8 percent rate but the length of a production worker’s workweek registered a modest decline – down 0.2 percent, to 41.4 hours. Earnings indicators for production workers posted healthy gains.
Average weekly earnings rose 4.7 percent (to $811) while average hourly earnings increased 4.9 percent (to $19.59). Consumer prices nationally were unchanged over the same time period.
February gains were posted in both housing and real estate indicators tracked by the MMAC. Existing home sales in the metro area numbered 706 in February, up 2.5 percent. February’s increase follows January’s 5.5 percent decrease. Mortgages recorded in Milwaukee County also reversed direction – from the 1.1 percent decline posted in January (vs. January, 2014) to February’s strong 15.8 percent increase.
New-car registrations in the metro area rose for the third consecutive month. Registrations numbered 1,959 in February, a 7.6 percent increase over year-ago levels.
February air passenger totals for Mitchell International Airport numbered 454,948, a 2.1 percent decline from one year ago.
