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March Economic Trends
May 6, 2019 – Lackluster activity marked metro Milwaukee economic indicators in March as 10 of 23 indicators tracked monthly by the Metropolitan Milwaukee Association of Commerce (MMAC) improved from year-ago levels. March’s aggregate is down from February’s 12 positive indicators. |
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“March marks the second time in four months that less than half of the indicators tracked were upward pointing,” said Bret Mayborne, the MMAC’s economic research director. “This follows a period of 82 consecutive months in which a majority of local indicators pointed upward.”
Highlights of the report include:
Highlights of the report include:
- Nonfarm employment growth was small in March, posting a net addition of 1,000 jobs on a year-over-year basis. March’s 0.1% gain was down from the 0.6% increase registered in February (over February 2018).
- By major industry sector, March’s job trend was a mixed bag. While five of ten major sectors posted year-over-year gains, two were unchanged, while three saw employment declines in this 12-month period.
- Both local housing and real estate indicators tracked by the MMAC registered similar March declines. Existing home sales in the metro area fell 14.9% vs. year-ago levels while mortgages recorded in Milwaukee County decreased 14.8% over the same time period.
Milwaukee’s tight labor market may be contributing to slower overall job growth. The metro area’s seasonally unadjusted jobless rate fell to 3.2% in March, down 0.3% percentage points from its year-ago levels. March’s local unemployment rate ranks below both the state’s 3.3% and the nation’s 3.9% rates.
Other unemployment indicators were mixed. While the number of unemployed fell 8.6% (vs. March 2018), to 26,500, the number of new unemployment compensation claims rose 4.6%, to 2,871, following February’s 13.4% increase – the first back-to-back increases in this indicator in almost six years (since June 2013).
IIndicators: March 2019 vs. March 2018
Nonfarm employment levels in the metro area averaged 868,400 in March, up slightly (+0.1%) from year-ago levels. The growth trend in jobs has weakened over 2019’s first three months, with January’s 0.7% and February’s 0.6% year-over-year gains coming in prior months.
March employment increases were posted in five of ten major industry sectors. The other services and manufacturing sectors led the way with year-over-year gains of 1.3% and 1% respectively. Job gains were also posted in the education & health services (up 0.9%), financial activities (up 0.8%), and leisure & hospitality (up 0.6%) sectors. Two other sectors – trade, transportation & utilities and government – saw unchanged job levels.
Job losses hit in three major industry sectors. The construction, mining & natural resources sector posted the largest loss in percentage terms with a 2.3% decrease. The professional & business services (down 1.8%), and information (down 1.5%) sectors also posted employment declines.
Among manufacturing production worker indicators, the length of the average workweek rose 2.4% in March, to 42.9 hours – this indicator’s fourth consecutive year-over-year increase. Average weekly earnings for such workers fell marginally to $966, while average hourly earnings decreased at a 2.3% pace to $22.51.
Both Milwaukee area housing and real estate indicators tracked by the MMAC pointed downward in March. Existing home sales for the metro area fell 14.9%, to 1,150, this indicator’s seventh consecutive year-over-year decline. Mortgages recorded in Milwaukee County posted a 14.8% decrease (to 1,647), coming on the heels of February’s 11.3% gain (vs. one year ago).
New-car registrations in the metro area rose 16.1% in March over year-ago levels, to 1,691. March’s increase marks this indicator’s first gain in nine months. Air passengers using Mitchell International Airport numbered 663,804 in March, down 3.8% from year-ago levels.
March employment increases were posted in five of ten major industry sectors. The other services and manufacturing sectors led the way with year-over-year gains of 1.3% and 1% respectively. Job gains were also posted in the education & health services (up 0.9%), financial activities (up 0.8%), and leisure & hospitality (up 0.6%) sectors. Two other sectors – trade, transportation & utilities and government – saw unchanged job levels.
Job losses hit in three major industry sectors. The construction, mining & natural resources sector posted the largest loss in percentage terms with a 2.3% decrease. The professional & business services (down 1.8%), and information (down 1.5%) sectors also posted employment declines.
Among manufacturing production worker indicators, the length of the average workweek rose 2.4% in March, to 42.9 hours – this indicator’s fourth consecutive year-over-year increase. Average weekly earnings for such workers fell marginally to $966, while average hourly earnings decreased at a 2.3% pace to $22.51.
Both Milwaukee area housing and real estate indicators tracked by the MMAC pointed downward in March. Existing home sales for the metro area fell 14.9%, to 1,150, this indicator’s seventh consecutive year-over-year decline. Mortgages recorded in Milwaukee County posted a 14.8% decrease (to 1,647), coming on the heels of February’s 11.3% gain (vs. one year ago).
New-car registrations in the metro area rose 16.1% in March over year-ago levels, to 1,691. March’s increase marks this indicator’s first gain in nine months. Air passengers using Mitchell International Airport numbered 663,804 in March, down 3.8% from year-ago levels.
Other Indicators (Latest Available)
Consumer prices nationally, as measured by the Consumer Price Index for Urban Consumers (CPI-U), rose 1.9% in March (vs. March, 2018) to 254.202 (1981-84=100). As of 2018’s first half, the U.S. Bureau of Labor Statistics no longer produces a consumer price index for the Milwaukee area.