|
September Economic Trends
November 7, 2018 – Economic activity indicators for the Milwaukee area held steady in September as thirteen of 23 monthly indicators registered improvement vs. year-ago levels, according to a monthly report issued by the Metropolitan Milwaukee Association of Commerce (MMAC). September’s total matches the 13 upward pointing indicators registered in August. |
| ||
“Metro Milwaukee’s local economic trend has been a bit lackluster in recent months,” said Bret Mayborne, the MMAC’s economic research director. “While a majority of indicators are still pointing upward, overall job gains have been tepid, offset in part by strong growth in a number of manufacturing indicators.”
Highlights of the report include:
Highlights of the report include:
- Nonfarm jobs in the metro area averaged 874,500 in September, a 0.7% increase over September, 2017 levels. Job growth in recent months has been tepid. September’s 0.7% gain trails both the 0.9% average increase posted over 2018’s first nine months and the nation’s 1.7% September year-over-year gain.
- Among major industry sectors, the manufacturing sector registered the strongest year-over-year percentage job gain, up 4%. Conversely, the financial activities sector posted the largest job decline, down 5.3% from one year ago.
- The length of the average workweek for manufacturing production workers reached its second highest level in its available record (2001 to present). The workweek averaged 43.7 hours in September, up 4.5% from year-ago levels.
Improvements were posted in area unemployment indicators. New unemployment compensation claims in the metro area fell 2.1% in September vs. year-ago levels to 2,392 while the number of unemployed dropped 11.1%, an absolute decline of 3,100.
Metro Milwaukee’s seasonally unadjusted unemployment rate fell 0.3 percentage points from year-ago levels, to 3% in September. Milwaukee’s rate ranks lower than the 3.6% rate posted nationally but higher than Wisconsin’s 2.6% rate.
Indicators: September, 2018 vs. September, 2017
Nonfarm jobs in the metro area rose 0.7% in September (vs. one year ago) to 874,500, matching August’s growth rate. Year-over-year gains have ranged from 1.3% to 0.7% over 2018’s first nine months, averaging 0.9% in this period. September’s increase registers at the low end of this range and failed to reach either national or state job growth levels over the same period.
The manufacturing sector contributed the largest share of added jobs among major industry sectors, increasing by 4,700 jobs over the past year, a 4% increase. Four other major sectors registered September employment gains, construction, mining & natural resources (up 2.4%), other services (up 2.4%), education & health services (up 2.2%) and professional & business services (up 0.7%).
Four of ten major industry sectors posted job declines in September. The month’s largest decline was registered in the financial activities sector, down 5.3%. Jobs also fell in the information (down 3%), trade, transportation & utilities (down 1.6%), and government (down 0.2%) sectors. One sector, leisure & hospitality, was unchanged from year-ago levels.
The trend in hours and earnings indicators for manufacturing production workers continued its upward track. The length of the workweek for such workers reached its second highest average in the available record (2001 to present), at 43.7 hours, up 4.5% from one year ago. Average weekly earnings rose by a similar amount, up 4.9% in September to $1,003. Gains in average hourly earnings were more modest, up 0.3% over year-ago levels, to $22.96.
Both local housing and real estate indicators tracked by the MMAC trended downward in September. Existing home sales in the metro area fell 5.2% year-over-year, to 1,393. Likewise, mortgages recorded in Milwaukee County declined – down 13.6% vs. year-ago levels, following the 0.9% decline posted in August.
New-car registrations fell for the third consecutive month on a year-over-year basis. Registrations fell 5.4% in September to 1,533, following the 18.2% decline posted in August. Air passengers using Mitchell International Airport numbered 534,931 in September, up 4% from one year ago. Over 2018’s first nine months, passenger totals have posted an average 3.1% increase.
The manufacturing sector contributed the largest share of added jobs among major industry sectors, increasing by 4,700 jobs over the past year, a 4% increase. Four other major sectors registered September employment gains, construction, mining & natural resources (up 2.4%), other services (up 2.4%), education & health services (up 2.2%) and professional & business services (up 0.7%).
Four of ten major industry sectors posted job declines in September. The month’s largest decline was registered in the financial activities sector, down 5.3%. Jobs also fell in the information (down 3%), trade, transportation & utilities (down 1.6%), and government (down 0.2%) sectors. One sector, leisure & hospitality, was unchanged from year-ago levels.
The trend in hours and earnings indicators for manufacturing production workers continued its upward track. The length of the workweek for such workers reached its second highest average in the available record (2001 to present), at 43.7 hours, up 4.5% from one year ago. Average weekly earnings rose by a similar amount, up 4.9% in September to $1,003. Gains in average hourly earnings were more modest, up 0.3% over year-ago levels, to $22.96.
Both local housing and real estate indicators tracked by the MMAC trended downward in September. Existing home sales in the metro area fell 5.2% year-over-year, to 1,393. Likewise, mortgages recorded in Milwaukee County declined – down 13.6% vs. year-ago levels, following the 0.9% decline posted in August.
New-car registrations fell for the third consecutive month on a year-over-year basis. Registrations fell 5.4% in September to 1,533, following the 18.2% decline posted in August. Air passengers using Mitchell International Airport numbered 534,931 in September, up 4% from one year ago. Over 2018’s first nine months, passenger totals have posted an average 3.1% increase.
Other Indicators (latest available)
Consumer prices nationally, as measured by the Consumer Price Index for Urban Consumers (CPI-U), rose 2.3% in September (vs. September, 2017) at 252.439 (1981-84=100). The Milwaukee area CPI-U reached 232.718 for the second half of 2017, a 1.8% increase from 2016’s second half.