The January 2016 State of Oregon Regional Economic Indexes of was released today. Full report is available here. We thank KeyBank for their generous support of this project.
Oregon Regional Economic Indicators:
Oregon’s regional economies entered 2016 on solid footing. Highlights of the report include:
- The vast majority of measure components were neutral or positive for all regions. The moving average measures of activity, which smooth monthly volatility, were above average for all major metro areas in January. Recall that “zero” for these measures indicates relative average growth; each region has its own underlying growth rate.
- The Portland metro area continues to post strong number consistent with that of past expansions. Strong demand for housing in the region continues to support rapid home price appreciation. The Eugene-Springfield measure rose on strong employment numbers and home sales; new housing permits, however, remains anemic.
- The economic engine of Central Oregon also appears to be firing on all cylinders. Rapid employment growth, low unemployment, and a hot housing market are all supporting the region’s measure.
- Growth has been consistently above average in the Rogue Valley since the middle of last year as the region continues to shake off the hit from the recession. Like Eugene, home permitting activity remains soft.
- The Salem measure surged on the back of faster labor force growth, low unemployment, solid employment gains, and a strong housing market. Note that multi-family project drove home permitting activity for the month. Expect some retrenchment in subsequent reports.
Note: Measures were updated to account for revised employment data.
Reminder: The regional measures are prone to potentially large swings due to the volatility of some of the underlying data, particularly measures of employment. The moving average measures smooth out much of that volatility.