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June Economic Trends
August 31, 2018 – Gains in the manufacturing sector led to a majority of metro area indicators showing year-over-year improvement in July, according to a monthly report by the Metropolitan Milwaukee Association of Commerce (MMAC). Fifteen of 23 July indicators improved from year-ago levels, down from June’s 17 upward pointing indicators. |
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“The area’s manufacturing sector provided a firm foundation for metro area economic growth in July,” said Bret Mayborne, economic research director for the MMAC. “Strong year-over-year gains in the number of manufacturing jobs as well as corresponding growth in production and earnings indicators for manufacturing production workers helped lead the way.”
Highlights of the report include:
Highlights of the report include:
- Nonfarm employment averaged 880,200 in July, a 1.2% increase from one year ago. July’s gain ranks higher than the average 1% year-over-year gain posted over the course of 2018’s first seven months.
- July employment gains were registered in six of ten major industry sectors. The leisure & hospitality sector (up 3.5%) registered the strongest year-over-year job increase. Conversely, the information sector (down 5.1%) recorded the sharpest decline.
- Housing and real estate indicators tracked by the MMAC posted mixed results in July. Existing home sales in metro Milwaukee rose 5.6% from year-ago levels, while mortgages recorded in Milwaukee County fell 4.3% over the same time period.
New unemployment compensation claims rose modestly in July. New claims rose 0.4% vs. year-ago levels, this indicator’s first such increase in 15 months. The number of unemployed in the metro area continued to track downward, registering a 7% decline vs. July, 2017, its 57th consecutive month of decline.
Metro Milwaukee’s seasonally unadjusted jobless rate fell to 3.6% in July, down 0.3 percentage points from one year ago. July’s local rate ranks higher than the state's 3.1% rate, but lower than the 4.1% rate posted nationally.
Indicators: July, 2018 vs. July, 2017
The number of nonfarm jobs in the metro area numbered 880,200 in July, an increase of 10,700 jobs (up 1.2%) over year-ago levels. Current growth is above the average trend posted year-to-date in 2018 and over double the comparable growth rate posted in July, 2017 (up 0.5%).
Six of ten major industry sectors posted year-over-year gains for July. The leisure & hospitality sector set the pace, growing at a 4% rate to 88,000 jobs. Other gainers include the construction, mining & natural resources (up 3.6%), manufacturing (up 3.5%), other services (up 2.8%), education & health services (up 2.5%), and government (up 0.5%) sectors.
July job declines were posted in four major industries. The 5.1% decline (to 13,000) in the information sector, ranked as the largest percentage decrease on a year-over-year level. Declines were also registered in the financial activities (down 3.5%), trade, transportation & utilities (down 0.8%) and professional & business services (down 0.2%) sectors.
Manufacturing’s strong 3.5% job increase was matched by gains in local hours and earnings indicators for manufacturing production workers. The average length of a production worker’s workweek reached 43.8 hours in July, up 7.1% from one year ago. Likewise, worker earnings indicators moved in a positive direction. Average weekly earnings for production workers rose 8.8% (to $1,012) and average hourly earnings for such workers increased 1.6%, to $23.10.
Local housing and real estate indicators tracked by the MMAC were mixed in July. Existing home sales rebounded from June weakness. Home sales in the metro area numbered 1,808 in July, up 5.6% from one year ago, following the 8.7% decline posted in June (vs. June, 2017). On the other hand, mortgages recorded in Milwaukee County for July fell 4.3% from year-ago levels, to 2,202.
New-car registrations fell for the sixth time in seven months. Registrations fell 17.3% from year-ago levels, to 1,660, following the 7.4% increase registered in June. Air passenger totals at Mitchell International Airport rose for the eighth time in nine months. Passengers numbered 665,311 in July, up 5.9% from one year ago.
Six of ten major industry sectors posted year-over-year gains for July. The leisure & hospitality sector set the pace, growing at a 4% rate to 88,000 jobs. Other gainers include the construction, mining & natural resources (up 3.6%), manufacturing (up 3.5%), other services (up 2.8%), education & health services (up 2.5%), and government (up 0.5%) sectors.
July job declines were posted in four major industries. The 5.1% decline (to 13,000) in the information sector, ranked as the largest percentage decrease on a year-over-year level. Declines were also registered in the financial activities (down 3.5%), trade, transportation & utilities (down 0.8%) and professional & business services (down 0.2%) sectors.
Manufacturing’s strong 3.5% job increase was matched by gains in local hours and earnings indicators for manufacturing production workers. The average length of a production worker’s workweek reached 43.8 hours in July, up 7.1% from one year ago. Likewise, worker earnings indicators moved in a positive direction. Average weekly earnings for production workers rose 8.8% (to $1,012) and average hourly earnings for such workers increased 1.6%, to $23.10.
Local housing and real estate indicators tracked by the MMAC were mixed in July. Existing home sales rebounded from June weakness. Home sales in the metro area numbered 1,808 in July, up 5.6% from one year ago, following the 8.7% decline posted in June (vs. June, 2017). On the other hand, mortgages recorded in Milwaukee County for July fell 4.3% from year-ago levels, to 2,202.
New-car registrations fell for the sixth time in seven months. Registrations fell 17.3% from year-ago levels, to 1,660, following the 7.4% increase registered in June. Air passenger totals at Mitchell International Airport rose for the eighth time in nine months. Passengers numbered 665,311 in July, up 5.9% from one year ago.
Other Indicators (latest available)
Consumer prices nationally, as measured by the Consumer Price Index for Urban Consumers (CPI-U), rose 2.9% in July (vs. July, 2017) to 252.006 (1982-84 =100). The Milwaukee area CPI-U reached 232.718 for the second half of 2017, a 1.8% increase from 2016's second half.