NVTC. Economic Performance and Outlook

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1 3//11 NVTC The U.S. and Washington Area Economic Performance and Outlook John McClain, AICP, Senior Fellow and Deputy Director, Center for Regional Analysis School of Public Policy, George Mason University March, 11. GDP Percent Change, (Real Dollars)

2 3//11 THOUSANDS Annual Change in Jobs US Recession Recovery Patterns of GDP Past Five Recessions Change in GDP Q1 19-Q Q1 1-Q 9-Q Quarters After Trough Sources: BEA, GMU Center for Regional Analysis,

3 3//11 U.S. Gross Domestic Product Quarterly Change: 13 Forecast > > > > > > > Source: Global Insight ISM Manufacturing and Non-Manufacturing Indices Mfg N-Mfg 3

4 3//11 Annual Change in Payroll Jobs - US THOUSANDS 3 1 Jan = Source: BLS Establishment Survey, NSA s Initial Unemployment Claims (-week moving average)

5 3//11 U.S. Unemployment Rate GI FCST Source: BLS, Seasonally Adjusted Productivity Quarterly Change: 13 Forecast > > > > > > > Source: BLS, Global Insight 5

6 3//11 (s) U.S. Housing Trends New & Existing Home Sales Existing (left scale) New (Right Scale) (s) U.S. Coincident and Leading Indices Nov Jan 11 RECESSION > > > LI L.I C.I. Nov- Feb-7 May-7 Aug-7 Nov-7 Feb- May- Aug- Nov- Feb-9 May-9 Aug-9 Nov-9 Feb-1 May-1 Aug-1 Nov-1

7 3//11 Interest Rates 1-15 Forecast > > > > > > Fed 3-Yr $/barrel 1 1 Oil Prices $ per barrel Forecast > > > > > > > > Source: Global Insight 7

8 3//11 Consumer Confidence Expectations Present Situation ti 1 Source: Conference Board, GMU Center for Regional Analysis U.S. Job Change by Sector December 7 December 9 Ranked by Size in 1 State & Local Govt Educ & Health Svcs Prof. & Bus. Svcs -1,53 Retail Trade -1, Leisure & Hosp. Manufacturing -,19 Financial Construction -1,795 Wlse Trade Other Services Transp. & Util. Federal Govt. Information (s) Total -,33, Source: BLS March 1 Benchmark, (Seasonally Adjusted), GMU Center for Regional Analysis

9 3//11 U.S. Job Change by Sector January 1 January 11 Ranked by Size in 1 State & Local Govt Educ & Health Svcs Prof. & Bus. Svcs Retail Trade Leisure & Hosp. Manufacturing Financial Construction Wlse Trade Other Services Transp. & Util. Federal Govt. Information -37 (s) Total = Source: BLS March 1 Benchmark, ( Seasonally Adjusted), GMU Center for Regional Analysis The Washington Economy 9

10 3//11 15 Largest Job Markets Job Change from Recession Start (1/7) (s) Washington -, Source: BLS March 1 Benchmark, GMU Center for Regional Analysis (s) Largest Job Markets Job Change Last 1 Years Washington, Source: BLS March 1 Benchmark, GMU Center for Regional Analysis 1

11 3//11 US GDP and Washington GRP Washington GRP US GDP Structure of the Greater Washington Economy Non-Local Business 1. Other Federal 15.7 Local Serving Activities 3. Federal 3.9 Procurement 19. Other: Health/Education, Media 11

12 3//11 Total Federal Spending Washington Metro Area Billions Current $ 1 1 Total 1 1 Procurement Source: GMU Center for Regional Analysis s 15 Annual Job Change MOTYC Washington MSA Source: BLS March 1 Benchmark, GMU Center for Regional Analysis 1

13 3//11 s Annual Data Jan Annual Job Change Washington MSA Mar May Annual Month over Year 9 1 Jul Sep Nov Jan Mar Source: BLS March 1 Benchmark, GMU Center for Regional Analysis May Jul Sep Nov Jan Mar May Jul Sep Nov (s) Largest Job Markets Job Change Dec 9 Dec 1 Washington + 57,5 Source: BLS March 1 Benchmark, GMU Center for Regional Analysis 13

14 3//11 Prof. & Bus. Svcs Federal Govt. Educ & Health Svcs State & Local Govt Retail Trade Leisure & Hosp. Construction Other Services Financiali Information Manufacturing Wlse Trade Transp. & Util. Job Change by Sector Dec 9 Dec 1 Washington MSA (s) Total 57, Source: BLS March 1 Benchmark, GMU Center for Regional Analysis Unemployment Rate DC 9.1 U.S.. SMD 5.7 MSA.7 - NVA Source: BLS, Not Seasonally Adjusted 1

15 3// Largest Job Markets Ranked by Unemployment Rate December 1 1 US Source: BLS, NOT Seasonally Adjusted $ Billions Federal Procurement Washington Metro Area 15

16 3//11 $ Billions Federal Spending By Type 19-9 Wages & Salaries DOD Federal Procurement in MSA Projection of Sec. Gates Proposed Cuts $ Billions - $9.5 Billion 5 -, Jobs Source: Census Consolidated Federal Funds Reports 1

17 3//11 Federal Employment Washington Metro Area s 35 Eisenhower Kennedy Johnson + Nixon - Ford Carter Reagan Bush 1 Clinton Bush Obama Washington Current Economic Index Federal Shutdown, 3 Weeks Dec-Jan Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan Dec Nov Oct Sep Aug Jul Jun May Apr Mar Feb Jan Source: GMU Center for Regional Analysis 17

18 3//11 Housing Market Trends House Price Index Change Q3 Q3 1 Source: FHFA 1

19 3//11 1 House Price Change Q 9 Q Source: NAR Single Family 1 Existing Home Sales Washington MSA Through January Month Moving Average

20 3//11 Average Sales Price Annual Percent Change Washington MSA All Existing Homes Source: MRIS, GMU Center for Regional Analysis Percent Change in Inventories of Existing Homes Month-Over-the-Year-Change 1, MSA Jan-May, >1 Jan = Source: MRIS, GMU Center for Regional Analysis

21 3//11 Total Active Listings Per Sale January Each Year Metro Area Source: MRIS, GMU Center for Regional Analysis Average Sales Price Percent Change Washington MSA All Housing Types Annual Change Annual Change by Month Source: MRIS, GMU Center for Regional Analysis 1

22 3//11 Average Sales Price Percent Change Northern Virginia All Housing Types Annual Change Annual Change by Month Source: MRIS, GMU Center for Regional Analysis Average Sales Price Percent Change Suburban Maryland All Housing Types Annual Change Annual Change by Month Source: MRIS, GMU Center for Regional Analysis

23 3// Average Sales Price Percent Change District of Columbia All Housing Types Annual Change Annual Change by Month Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Source: MRIS, GMU Center for Regional Analysis Washington MSA Building Permits 1, 3-Month Mvg Avg 3

24 3//11 Office Market Trends 1 1 Office Vacancy Rate Washington Metro Area 19-1 Projected 1.9 Avg = 9.1 Source: Delta Associates

25 3//11 Office Market Outlook: 1-1 (millions of square feet) 1/1 Pipeline (1) Totals Space Available (1) Demand (1) Vacancy 1/1 Vacancy 1/1 D.C Sub. MD N. VA Metro Source: Delta Associates (1) Projected for 1/1 Economic Forecast 5

26 3//11 Employment Change by Sub-state Region (s) D.C Sub. MD No. VA REGION Average Annual Change = 3, Source: BLS, GMU Center for Regional Analysis, 9-1 based on 1 Benchmark data from BLS - - GDP/GRP - 15 Washington U.S Source: Global Insight, GMU Center for Regional Analysis

27 3//11 SUMMARY Locally Economy Job growth, declining unemployment, and job growth in high-wage sectors Federal shutdowns/slowdowns? Locally - Housing Prices are stable, rising Inventories moderate Foreclosures still around Given all and with mortgage rates low, sales New housing is yet to recover later this year & 1 policy-cra.gmu.org 7

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