ECONOMIC NOTES:
- Global Business Confidence -29.0%
- Global businesses remain remarkably
pessimistic. European business confidence has
never been as dark and is near record lows
everywhere else. Businesses say that sales fell
sharply last week to a new record low, and pricing
power continues to evaporate as close to one-third of
businesses say they are cutting prices for their goods
and services. Sentiment is bleak across all industries,
particularly among manufacturing and business
service firms.
- GDP-6.34%
- The contraction in real GDP in the fourth quarter
was revised slightly downward in the final report, to
6.3% at an annualized rate, from 6.2% previously. This
matched the consensus. There were downward
revisions to inventories, service exports and
nonresidential construction; somewhat offsetting
these were a downward revision to service imports,
boosting growth, and an upward revision to goods
exports. Corporate profits fell $250 billion at an
annualized rate in the fourth quarter, by far the biggest
drop ever. The economy remains in the midst of the
deepest downturn since the Great Depression and
will continue to contract in the near term.
- Durable Goods (Advance) +3.4%
- Durable goods orders rose in February for the first
time in seven months, up 3.4%. Excluding
transportation, orders were up 3.9%, and new orders
for core capital goods rose 6.6% on the strength of
machinery orders. Shipments continued to fall, ticking
down by half a percentage point, and core capital
goods shipments fell 2.5%. Some improvement in
new orders was expected, though the overall increase
was unexpected.
- State Personal Income -0.2%
- Personal income fell 0.2% in the fourth quarter of
2008 in the U.S. following an increase of the same
magnitude in the third quarter. This was the first
decline in nominal personal income since the first
quarter of 1994. Income fell in 41 states, and declines
were the largest in the goods-producing sector as
well as in wholesale and retail trade. Personal
income slowed to 3.9% for all of 2008 compared with
growth of 6% in 2007. Every state except Alaska
experienced slower income growth last year.
- Jobless Claims +8k
- Initial jobless claims increased by 8,000 to
652,000 for the week ending March 21, in line with
expectations for a gain. Continuing claims increased
by 122,000 to 5.56 million for the week ending March
14, setting yet another new high. Claims have been
rising consistently thus far this year, and these latest
data points add further evidence of considerable labor
market strain.
- FHFA Purchase-Only House Price Index
+1.7%
- The FHFA purchase-only monthly price index
increased by 1.7% from December to January, led by
significant increases in the East North Central, South
Atlantic, New England, and Middle Atlantic census
divisions, with only the Pacific division showing a
monthly decline. However, the volume of sales in
January was relatively low even when considering only
the conforming loan segment of the housing market.
Although the January data are good news, they should
not be interpreted as the start of a housing market
recovery. The monthly price index for the U.S. is still
down by 6.3% since January 2008.
- Existing Home Sales +5.1%
- February's home sales report brings a bit of good
news to the housing market. Existing-home sales
surprised on the upside with a 5.1% m/m increase,
pulling sales up to 4.72 million annualized units.
February's gain was the strongest increase since July
2003. Further, the gain was broad-based across
Census Bureau regions. The descent in house prices
also improved, with a decline of 15.5% y/y, compared
with a downwardly revised decline of 17% in January.
The months of inventory were flat at 9.7, however, due
to an increase in the number of homes available for
sale. Finally, even with the strong increase, February's
sales pace was still the third slowest in recent
memory.
- New Home Sales (C25) +4.7%
- Sales of new homes came in surprisingly strong
in February. A 4.7% increase brought sales up to
337,000 annualized units. Months of inventory slipped
slightly but remained high at more than 12. The
median sales price was down by 18%. Conditions
appear to be improving, but one must be cautious
when interpreting the monthly sales data.
- MBA Mortgage Applications Survey +32.2%
- In the week ending March 13, the MBA market
index increased 32.2% to 1,159.4, the third week of a
double percentage-point increase. Similarly, both
parts of the composite also increased. The refinance
index increased 41.5% this week, finishing at 6,363.2.
The purchase index ended at 267.8, up 4.2%.
- Chain Store Sales -0.4%
- Chain store sales fell 0.4% in the week ending
March 21, the third decline in the last four weeks.
However, the year-ago decline held steady at 1.4%.
Sales remain poor, steadily declining, but perhaps not
as bad as they could be considering that Easter is in
April this year.
- Oil and Gas Inventories +356.6 mb
- Crude oil inventories rose by 3.3 million barrels
during the week ending March 20, according to the
Energy Information Administration, above expectations
of a 1.1 million barrel buildup. Gasoline inventories
fell by 1.1 million barrels, more than the consensus
estimate of a 650,000 barrel decline. Distillate
inventories fell by 1.6 million barrels, slightly more
than expected. Refinery operating capacity fell slightly
to 82% from 82.1%. Total domestic petroleum
demand rose. This mixed report will cause oil prices
to fall.
- Weekly Natural Gas Storage Report+3 B
cf
- Working gas in underground storage increased by
3 billion cubic feet during the week ending March 20.
The consensus estimate was for a decline of 9 billion
cubic feet.
Public Policy Initiatives
- CO - Ritter Announces Third Round of
Recovery Projects. Gov. Bill Ritter has certified
the third round of Colorado transportation projects that
will be paid for with federal recovery money. The state
is to receive about $400 million for highway and
bridge projects and another $103 million for transit
projects. So far, Ritter has certified more than 80 road
and transit projects valued at $415 million.
http://www.denverpost.com/technology/ci_11961015
- MD - O'Malley Announces $15 Million FAA
Grant for BWI. Gov. Martin O'Malley says BWI
Thurgood Marshall Airport has received a $15 million
grant from the Federal Aviation Administration's Airport
Improvement Program to reconstruct two aprons at
the airport. The project will include markings, airport
signs and lights, drainage improvements and the
installation of a new deicing collection system, and is
projected to employ some 200 people.
http://www.washingtonpost.com/2602754.html
- MA - Patrick Sees Help for Colleges.
Students at the University of Massachusetts preparing
to pay an additional $1,500 in fees next year could see
that amount reduced dramatically under a plan by Gov.
Deval L. Patrick to use federal recovery money to offset
cuts to higher education funding. Patrick's plan will
use $162 million in federal recovery money to aid
state colleges and universities, including $82 million
for the University of Massachusetts. The money
should allow UMass trustees to make good on their
promise to students to rebate much of the fee
increase if recovery money became available.
http://www.berkshireeagle.com/1982916
- NJ - Corzine Announces Recovery Funds for
Community Health Centers. Two New Jersey
community health centers will receive $2.6 million in
federal recovery funds over the next two years to
provide health care to low-income medically
underserved residents. The funding is being provided
by the Health Resources Services Administration, a
branch of the U.S. Department of Health and Human
Services, as part of the American Recovery and
Reinvestment Act. Gov. Jon Corzine said: "New
Jersey's healthcare safety net must remain strong
during this economic crisis. It is reassuring to know
that New Jersey has a true partner in health care in
Washington."
http://atlanticville.gmnews.com/page/009.html
- ME - Baldacci Announces First Recovery
Funded Project. Maine's first federal recovery
funded project will put $31.5 million worth of
pavement, pavers, truck drivers, equipment operators,
diesel fuel and wooden stakes into action this spring
and summer, repaving the northbound lanes of
Interstate 295 from Topsham to Gardiner. Gov.
Baldacci said estimates from the Federal Highway
Administration and the state's experience
rehabilitating the southbound I-295 lanes last year
indicate the project could create about 840 jobs,
directly and indirectly. "This project will put Mainers
back to work," Baldacci said, "and we all know that a
good job is the best social program. The economic
recovery package is already starting to put people
back to work here in Maine and around the country."
http://morningsentinel.mainetoday.html
- DE - Markell Lays Out Energy Plan.
Delaware's quasi-public energy-efficiency program,
already getting millions from a regional carbon-tax
program, could also share in $24 million in federal
recovery funds directed to the state energy program.
Delaware's letter, certified by Gov. Jack Markell, said
the funds would be used for energy-efficiency
improvements for homes and businesses, including
energy audits and installation of efficient heating and
cooling systems; replenishment of the Green Energy
Fund, a state tax-credit program that provides cash
incentives to install renewable-energy systems like
solar panels; and energy-efficiency upgrades for state
facilities. http://www.delawareonline.com/334/1003
- WI - Doyle Kicks Off Infrastructure
Construction. Gov. Jim Doyle kicked off
construction on the Interstate 94 north-south freeway
project that will modernize and expand the corridor to
eight lanes. About $1.9 billion in improvements are
planned for the freeway that runs from the Illinois-
Wisconsin state border to Milwaukee. The project is
expected to create more than 2,300 jobs and be
complete in 2016. "Improvements to the North-South
will create thousands of jobs and will support
Wisconsin's overall economy by accommodating
business and recreational travelers for years to
come," Doyle said. "The state and federal investments
being made to Wisconsin's transportation system
mean we will emerge from the national economic
situation stronger, more modern, with an improved
infrastructure that will help Wisconsin succeed in the
worldwide economy."
http://www.bizjournals.com/milwaukee/daily15.html
- KY - Beshear Welcomes Statewide Health
Information Progress. The Louisville Health
Information Exchange has selected 3M Health
Information Systems to provide the electronic health
record banking system and interoperability solution to
enable health information exchange across the
greater Louisville area. 3M and its partner,
InterComponentWare, Inc. will design, build, and pilot
an integrated health information network that will offer
free health record banking services to all 1.2 million
citizens in the greater Louisville community. "LouHIE
will work closely with Kentucky state officials working
on statewide health information exchange," said Gov.
Steve Beshear. "The state is excited about the
opportunity to collaborate with LouHIE, 3M, ICW, and
the Louisville area leaders in creating Kentucky's e-
health research laboratory for the nation."
http://www.businesswire.com/Lang=en
THIS WEEKS LEADS:
- Port of Subs
- Port of Subs, Inc. trades as Port of Subs at 140
locations throughout AZ, CA, ID, NV, OR, UT
and WA.
- The sandwich shops occupy spaces of
1,600 sq.ft. to 1,800 sq.ft. in freestanding locations
and strip centers.
- Growth opportunities are sough
throughout the existing markets during the coming 18
months.
- Typical leases run five years with options.
- Preferred demographics include a population of
15,000 within one mile earning $40,000 as the
average household income.
- For more information, contact
- Director of
Real Estate,
- Port of Subs, Inc.,
- 5365 Mae Anne
Avenue, Suite A-29,
- Reno, NV 89523
- Bahama Breeze
- Darden Restaurants, Inc. trades as Bahama
Breeze at 23 locations nationwide.
- The
restaurants, offering Caribbean cuisine, occupy
spaces of 8,000 sq.ft. to 8,600 sq.ft. in endcaps,
freestanding locations and power and strip centers.
- Plans call for one to two openings throughout
major metropolitan markets nationwide during the
coming 18 months.
- For more information, contact
- John
Doshna,
- Darden Restaurants, Inc.,
- 5900 Lake
Ellenor Drive,
- Orlando, FL 32809
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Greetings!
- Job Gains/Losses - County
Rankings
- Who is gaining jobs?
- Who is losing jobs?
- How you rank?
Small Business Stimulus $
Public Policy Initiatives
Economic Notes
This Weeks Leads
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SCORECARD |
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Utah Community Development Block Grant
Stimulus Allocations
Grantee | Allocation
Amounts |
SALT LAKE
CITY | $1,098,281 |
SALT LAKE
COUNTY | $657,866 |
PROVO | $457,954 |
OGDEN | $310,838 |
WEST
VALLEY | $250,336 |
OREM | $164,094 |
LOGAN | $158,804 |
WEST
JORDAN | $132,778 |
ST
GEORGE | $128,777 |
SANDY
CITY | $106,502 |
TAYLORSVILLE | $99,705 |
TR>
LAYTON | $91,212 |
CLEARFIELD | $62,148 |
UT
NONENTITLEMENT | $1,776,702 |
Source: American Recovery and Reinvestment Act
of 2009: CDBG Formula Allocations,
3/24/09
Utah Labor Market Indicators February -2009
(January, December, November, October)
2008
Who is Gaining Jobs - February
2009
Ranked by Change
County | January |
February | Change | %
Change |
State
Total | 1,224,703 | 1,221,606 |
-3,097 | -0.3% |
Weber | 93,692 | 93,914
| 222 | 0.2% |
Grand | 3,755 |
3,948 |
193 | 5.1% |
Summit | 27,028 |
27,174 | 146 | 0.5%
|
Box
Elder | 19,719 | 19,847 |
128 | 0.6% |
Uintah | 15,442 | 15,561
| 119 | 0.8% |
Tooele | 14,963 |
15,081 | 118 | 0.8%
|
Iron | 16,384 |
16,492 |
108 | 0.7% |
Washington | 49,960 |
50,049 | 89 | 0.2%
|
Carbon | 9,999 | 10,066
| 67 | 0.7% |
San
Juan | 3,892 | 3,959 |
67 |
1.7% |
Sevier | 7,890 |
7,939 | 49 | 0.6% |
Duchesne | 8,718 |
8,765 | 47 | 0.5% |
Garfield | 1,976 |
2,019 |
43 | 2.2% |
Juab | 3,048 |
3,084 |
36 | 1.2% |
Kane | 2,724 |
2,756 |
32 | 1.2% |
Beaver | 1,998 |
2,029 |
31 | 1.6% |
Sanpete | 7,599 | 7,619
| 20 | 0.3% |
Millard | 3,805 |
3,821 |
16 | 0.4% |
Daggett | 334 |
348 |
14 | 4.2% |
Piute | 329 | 336 |
7 | 2.1% |
Morgan | 1,707 |
1,713 |
6 | 0.4% |
Wasatch | 5,870 | 5,871
| 1 | 0.0% |
Emery | 3,623 |
3,623 |
0 | 0.0% |
Source: Utah Dept of Workforce Services,
3/24/09
Who is Losing Jobs - February
2009
Ranked by Change
County | January
| February | Change | %
Change |
State
Total | 1,224,703 | 1,221,606 |
-3,097 | -0.3% |
Salt
Lake | 588,452 | 585,538 |
-2,914 | -0.5% |
Utah | 180,984 |
179,958 | -1,026 | -0.6%
|
Cache | 50,300 |
49,700 | -600 | -1.2%
|
Davis | 98,937 | 98,828
| -109 | -0.1% |
Rich | 623 | 620 |
-3 | -0.5% |
Wayne | 951 | 950 |
-1 | -0.1% |
Source: Utah Dept of Workforce Services,
3/24/09
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Small Business Stimulus $ |
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Small businesses represent 97% of all Utah
employers and create 87% of the states net new jobs.
A "small" business generally means a privately
held enterprise with up to 19 employees, or a sole
proprietorship. Utah entrepreneurs are the
creators, risk takers, inventors, and leaders of our
economy. These individuals and businesses
demonstrate why Utah really is a great place to start
and grow a successful business.
SBA Stimulus Bill - Quick Small Business
Impact
The American Recovery and Reinvestment Act
contains a package of loan fee reductions, higher
guarantees, new SBA programs, secondary market
incentives, and enhancements to current SBA
programs that will help unlock credit markets and
begin economic recovery for the nation's small
business sector.
The tax incentives and credit stimulus elements
of the Recovery Act will truly help small business
owners affected by the credit crunch, and will provide
financing opportunities to help them create new jobs
in their communities.
The bill provides $730 million to SBA and makes
changes to the agency's lending and investment
programs so that they can reach more small
businesses that need help. The funding
includes:
- $375 million for temporary fee reductions or
eliminations on SBA loans and increased SBA
guaranteed shares, up to 90 percent for certain loans
- $255 million for a new loan program to help small
businesses meet existing debt payments
- $30 million for expanding SBA's Microloan
program, enough to finance up to $50 million in new
lending and $24 million in technical assistance grants
to microlenders
- $20 million for technology systems to streamline
SBA's lending and oversight processes
- $15 million for expanding SBA's Surety Bond
Guarantee program
- $25 million for staffing up to meet demands for
new programs
- $10 million for the Office of Inspector General
The bill also authorizes refinancing for certain SBA
loans so borrowers can expand their businesses on
favorable terms, and expands leverage capability for
Small Business Investment Companies.
The stimulus bill takes a comprehensive
approach and attacks several problems facing small
businesses at once by reducing fees, guaranteeing a
greater share of certain loans, expanding capacity in
the Microloan program, providing new loans to help
small businesses keep their doors open through
economic hardship, as well as new mechanisms to
help unfreeze the secondary markets for SBA-backed
loans.
Declines in SBA lending volume last year, which
are continuing in FY 2009, reflect problems in the
broader credit markets, and present hurdles to small
businesses that are seeking credit in the current
economy. The financial crisis has created a variety of
conditions that impact small businesses, including a
lack of liquidity in the banking system, a reluctance of
many lenders to extend new loans, tightened credit
standards, weaker finances at small businesses, and
uncertainty about taking on new debt on the part of
many entrepreneurs.
The Recovery Act addresses small businesses'
lending problems, and addresses key investment and
contracting issues. The bill helps Small Business
Investment Companies better leverage investment
capital to reach more small companies. The bill also
increases the current contract limit for SBA's Surety
Bond Guarantee program, which will help small
businesses compete for contracts.
90 Percent Guarantee
The bill allows SBA to raise its loan guarantee
from the current levels to as much as 90 percent for
some loans. At present, SBA can guarantee loans up
to 85 percent on loans up to $150,000, and up to 75
percent on loans greater than $150,000. The 50
percent guarantee on SBA Express loans would
remain unchanged. Increasing the SBA guarantee
percentage will encourage lenders to extend more
capital to small businesses by increasing the share
covered by an SBA guarantee.
Continued Next Week With:
- Business Stabilization Loans
- Microloans
- Refinancing
- Secondary Market Expansion
- Investment Program
- Surety Bonds
Source: SBA, April 2009
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SOLVING PROBLEMS - CREATING OPPORTUNITIES |
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