The January 2016 State of Oregon Economic Indexes of was released today. Full report is available here. We thank KeyBank for their generous support of this project.
The Oregon Measure of Economic Activity gained sharply in the first month of 2016, indicating the state’s economy remains on solid ground. Highlights of the report include:
- Although national indicators of manufacturing activity softened over the past year, the Oregon manufacturing sector held firm with employment rising and hours worked at high levels. This likely reflects the more-limited exposure of Oregon to declining oil and gas activity relative to other states..
- Construction employment supported the measure while housing permits were a neutral factor. The household sector also held strong despite the anticipated negative contribution from equity prices.
- The University of Oregon Index of Economic Indicators grew 0.2% in January.
- Initial unemployment claims held steady while, employment services payrolls (largely temporary help workers) rose. Both indicators suggest continued job gains for Oregon.
- The Oregon weight distance tax (a measure of trucking activity) and core manufacturing orders (a national indicator) both rose; average weekly hours worked in manufacturing, however, slipped. Consumer sentiment was stable despite falling equity prices.
- Indexes were updated to account for revised employment data.
These two indicators suggest ongoing growth in Oregon at an above average pace of activity. The ongoing US economic expansion provides sufficient support to sustain Oregon’s economy for the foreseeable future.