A P R I L 2 0 0 3 ECONOMY STILL STUCK IN NEUTRAL By Marshall J. Vest Forecasting Project Director February 28, 2003 E conomic recovery is being held hostage by geopolitical tension, including Iraq, North Korea, the Arab-Israeli conflict, and the threat of terrorism. Until the situation in Iraq is resolved, the economy is likely to continue in a sideways pattern as decision makers remain on the sidelines, waiting to see what happens. If the war is short and decisive, hesitancy will fade and economic growth will resume in earnest. Arizona’s economy remains in neutral, but appears poised to expand. Look for better results by midyear. RECENT EVIDENCE FOR ARIZONA Arizona’s labor market sluggishness continued through year-end 2002 with little growth in non-farm employment. This flat pattern – neither growth nor losses — has been in place now for nearly a year. There are signs of life in some sectors, however. Services and construction both are off recent lows and are beginning to look like what one would expect in the early phases of a recovery. Federal government payrolls also are up sharply, reflecting the huge boost in federal spending that has been propping up the national economy S P R I N G (Exhibit 1) — new Border Patrol and airport screeners, mainly, but also more CIA, FBI and Customs workers. Business services, the industry that registered the largest losses during the recession, added 5,000 jobs during the past six months. Since this classification includes the “contingent workforce,” i.e., temporary help and contract workers who suffered most from recent cutbacks, this should be one of the first sectors to register gains when things improve. The bad news is that manufacturing payrolls continue to plunge. Since peaking in January 2001, more than 27,000 jobs have disappeared, and there is no end in sight (Exhibit 2). This is the worst decline for Arizona manufacturers ever, surpassing the losses of a decade ago. Joining manufacturing in the list of industries that continue to slide is mining, communications & utilities, and FIRE (finance, insurance, and real estate) as well as travel-related sectors. Hotels and transportation sectors have yet to stage a recovery after plunging in late 2001. This is the last look at employment using the SIC coding system. By mid-March, we’ll have new industry detail using the NAICS coding system. The outlook for job markets going forward is mixed. Help wanted ads in Phoenix, collected by the Conference Board, remains near recession lows, while a survey of hiring intentions conducted by Manpower is downright encouraging: net hiring strength for the second quarter is back I S S U E above positive 20 — almost back to the readings that prevailed in the second half of the 1990s. Consumer confidence, on the other hand, stands at the lowest level since late 1993. War worries and the poor job market are the major reasons. Arizona consumer confidence is measured by the Behavior Research Center with sponsorship from Stockton Capital Management and Trust of Scottsdale. Measures of consumer spending and personal income show little if any acceleration in recent months, although the change in individual income tax collections have moved closer to zero from decidedly negative readings of a few months ago (Exhibit 3). No doubt the most amazing feature in recent months is the strength in homebuilding and resale housing markets. Driven by low interest rates and recognition of housing as an investment vehicle, homebuilding ended 2002 near record levels (Exhibit 4). After significant upward movement, single-family construction statewide approached 58,000 at an annual rate as the year came to an end. Metro Phoenix accounts for the gain – Metro Tucson remained steady near recent highs. The upward surge is truly remarkable, given weakness in labor markets and falling confidence. Low interest rates and a strong investment motive account for the surge. Fortunately, there are few signs of a bubble in housing in Arizona markets. I N S I D E THE ELLER COLLEGE See Page 16 BREAKFAST WITH THE ECONOMISTS NAICS ARE COMING! ............3 ARIZONA’S STATE BUDGET MESS SELF INFLICTED............5 THE BUDGET CRISIS WAS PREDICTABLE.......................5 STATISTICAL ABSTRACT .........6 ECONOMIC INDICATORS ........7 ELLER COLLEGE OF BUSINESS AND PUBLIC ADMINISTRATION T UCSON, ARIZONA EXHIBIT 1 Federal Spending Boosts Jobs EXHIBIT 2 Where’s the Bottom? Federal Government Employment, Arizona (seasonally adjusted) Manufacturing Employment, Arizona (seasonally adjusted) 000s Shaded areas denote recession 000s Shaded areas denote recession Note: Decennial Census in 2Q of 80, 90, 2000 According to a repeat sales index from Fannie Mae and Freddie Mac databases, housing prices increased by 4.5% during the year ending in third quarter 2002. That was less than nationwide, which saw prices rise 6.2%. Prices in Phoenix rose 4.0%, Tucson 5.8%, Flagstaff 5.7% and Yuma 2.5%. Those are far from excessive, and short of what one might expect if an asset bubble were building. Yet there is a lingering fear that recent trends in housing markets are too good to last. In fact, there are a number of reasons to worry. In addition to low consumer confidence, there are mounting signs of household financial distress. Personal bankruptcies, auto repossession rates, manufactured housing loan delinquencies, net charge-off on credit cards, FHA/VA mortgage delinquencies, and mortgage foreclosure rates on conventional mortgage loans are all setting new records. Lenders are tightening credit standards as credit quality deteriorates, and Freddie Mac and Fannie Mae are introducing new fees on cash out re-financings. Households today hold $5.8 trillion in mortgage liabilities on their balance sheets – an increase of 40% in the past four years. All these are worrisome signs for homebuilding in the coming months. PAGE TWO THE OUTLOOK We expect modest recovery as the year unfolds. A short and decisive victory in the war with Iraq will bring a collective sigh of relief from consumers, CEOs and investors alike. CEOs will unlock long-delayed plans to grow their companies, and that will provide the spark needed to get the economy rolling. However, it will take at least a few more months for manufacturing to turn around, given excess capacity and weak economies among global trading partners. Auto sales and homebuilding will weaken from unsustainable levels, and consumers will restrain spending to pay down debt as interest rates rise and the opportunity to do cash-out refinancing disappears. Therefore, we should expect only gradual improvement in the second half that will lead to solid growth in 2004. We look for the Arizona economy to generate about 40,000 net new jobs this year, for growth just under two percent. The following year and beyond should bring growth in excess of four percent. The services industry will lead the way, with business services registering the largest gains. Manufacturing should reverse course by the third quarter, but it will be 2006 before the jobs that have been lost are recovered. Government payrolls will see little if any growth this year or next, due to budget cutting. See the accompanying forecast table. Personal income numbers will look better this year and next as companies bring back bonuses and some stock options rise above water once again. Look for a gain exceeding 5.5% this year and 7.5% next year. Consumers will spend more as the economy recovers, but spending will not grow as fast as personal income while households repair their balance sheets and pay off some debt. It will be 2005 before retail sales catch up to personal income growth. Look for retail sales gains to average 5.5% this year and next. Population growth continues to slow, and will struggle to reach two percent this year. That means roughly 100,000 new residents this year, down from nearly 150,000 only two years ago. Next year will bring 125,000, then 150,000 in 2005. Although the recovery remains in neutral in early 2003, and risks are sky-high, the best bet is that the economy will gain momentum as the year unfolds.■ ARIZONA’S ECONOMY EXHIBIT 3 Volatile Withholding Shows Improvement EXHIBIT 4 A Remarkable Year for Homebuilding Individual Income Tax Withholding, Arizona Building Permits, Arizona (SAAR, smoothed) % Change vs. YA 000s NAICS ARE COMING! S P O N S O R S Over the past couple of years, Federal statistical agencies have been converting to the North American Industrial Classification System (NAICS, rhymes with “snakes”). This new integrated North American coding scheme has over 350 new industries and a six-digit coding scheme, compared to the old four-digit SIC (Standard Industrial Codes) structure. NAICS groups the economy into 20 broad sectors compared to only 10 SIC divisions. While a substantial improvement, it introduces breaks in time series far more profound than earlier revisions. Data for roughly two-thirds of all four-digit SICs will be derivable from the NAICS system. Arizona Department of Commerce In the next few months the new system will be reflected in measures used by forecasting models across the country. Last November, the Federal Reserve’s data on industrial production changed to NAICS, with history back to 1972. In December, new input-output tables were released by the Bureau of Economic Analysis (BEA). In June, employment data from the Current Employment Statistics (CES) program will be released. Global Insight, our provider of national forecasts, will be extensively revising their models to incorporate these changes. City of Mesa In mid-March, the Arizona Department of Economic Security will begin publishing their monthly employment data on NAICS basis. The release will include historical data to 1990 for statewide totals and metro areas. Historical data for counties will be available back only to 2001. In the April-May time frame, the U.S. Bureau of Economic Analysis (regional statistics office) will switch personal income by industry and source to NAICS. Quarterly personal income for Arizona will be available historically only for 2002. The annual series for state and county personal income will go back to 2001. KB Home All these changes will necessitate extensive re-specification of our state and metro models – a process that is likely to stretch into the summer or fall as additional data is received. We’ll continue to issue forecasts using whatever data is available, during what promises to be a very busy period for us. These changes will improve our understanding of economic trends and (hopefully) result in better forecasts. ARIZONA’S ECONOMY Arizona Joint Legislative Budget Committee Arizona Public Service Company Bank One Arizona CB Richard Ellis City of Tucson Compass Bank Elliott D. Pollack and Company Merrill Lynch Northern Trust Bank of Arizona Pima Association of Governments Pima County Salt River Project Tucson Electric Power Company Tucson Newspapers PAGE THREE F O R E C A S T Forecasts for Arizona Personal Income ($ mill) percent change Per Capita Personal Income percent change Aggregate Retail Sales ($ mill)* percent change Population (000s, mid-year) percent change Net Migration (000s) Wage & Salary Employment (000s) percent change Goods-Producing percent change Construction percent change Manufacturing percent change Service-Providing percent change Trade (Wholesale & Retail) percent change Services percent change T A B L E S 2001 137,313.5 4.8 25,811 1.9 55,417.7 2.1 5,319.9 2.9 107.4 2,267.0 1.1 384.6 -0.5 165.0 2.1 210.1 -2.4 1,882.4 1.4 533.3 1.3 711.2 0.4 2002 143,186.8 4.3 26,250 1.7 56,582.6 2.1 5,454.8 2.5 68.5 2,248.8 -0.8 362.3 -5.8 159.8 -3.2 193.7 -7.8 1,886.5 0.2 538.2 0.9 706.5 -0.7 2003 151,344.7 5.7 27,225 3.7 59,409.3 5.0 5,559.0 1.9 69.4 2,289.3 1.8 357.6 -1.3 163.9 2.6 185.4 -4.3 1,931.7 2.4 546.8 1.6 734.6 4.0 2004 163,001.3 7.7 28,684 5.4 62,664.9 5.5 5,682.6 2.2 100.6 2,382.8 4.1 356.9 -0.2 162.0 -1.2 186.9 0.8 2,025.9 4.9 570.2 4.3 790.4 7.6 2005 175,938.4 7.9 30,136 5.1 67,588.6 7.9 5,838.1 2.7 118.7 2,486.8 4.4 371.4 4.1 167.8 3.6 195.6 4.7 2,115.5 4.4 593.5 4.1 835.1 5.7 2006 191,501.2 8.8 31,890 5.8 72,842.0 7.8 6,005.1 2.9 129.7 2,601.8 4.6 391.1 5.3 176.1 4.9 207.2 5.9 2,210.7 4.5 619.5 4.4 879.9 5.4 2007 206,457.4 7.8 33,412 4.8 77,969.2 7.0 6,179.1 2.9 125.1 2,700.9 3.8 407.9 4.3 185.0 5.1 215.2 3.8 2,293.0 3.7 643.8 3.9 917.5 4.3 Forecasts for Phoenix-Mesa Metro Area Personal Income ($ mill) percent change Per Capita Personal Income percent change Aggregate Retail Sales ($ mill)* percent change Population (000s, mid-year) percent change Net Migration (000s) Wage & Salary Employment (000s) percent change Goods-Producing percent change Construction percent change Manufacturing percent change Service-Providing percent change Trade (Wholesale & Retail) percent change Services percent change 2001 93,005.2 3.0 27,525 -0.1 37,876.4 1.6 3,378.9 3.1 67.1 1,597.4 1.0 282.9 -1.4 120.7 1.4 159.7 -3.4 1,314.5 1.5 382.5 1.9 517.5 -0.1 2002 95,369.7 2.5 27,563 0.1 37,862.5 0.0 3,460.1 2.4 47.5 1,582.7 -0.9 271.8 -3.9 119.3 -1.1 149.9 -6.2 1,310.9 -0.3 382.6 0.0 514.4 -0.6 2003 100,571.3 5.5 28,501 3.4 39,842.4 5.2 3,528.7 2.0 36.4 1,614.7 2.0 266.0 -2.1 118.3 -0.9 145.2 -3.1 1,348.6 2.9 386.9 1.1 535.5 4.1 2004 108,034.0 7.4 29,839 4.7 41,963.1 5.3 3,620.6 2.6 59.4 1,676.8 3.9 263.6 -0.9 117.2 -0.9 143.9 -0.9 1,413.2 4.8 398.5 3.0 572.6 6.9 2005 116,979.6 8.3 31,349 5.1 45,685.2 8.9 3,731.5 3.1 77.3 1,747.1 4.2 271.6 3.0 121.4 3.5 147.7 2.7 1,475.5 4.4 413.9 3.9 602.2 5.2 2006 127,556.2 9.0 33,125 5.7 49,400.5 8.1 3,850.7 3.2 84.7 1,825.3 4.5 284.2 4.6 127.4 5.0 154.2 4.4 1,541.2 4.4 430.3 4.0 632.6 5.0 2007 137,704.1 8.0 34,685 4.7 52,860.2 7.0 3,970.1 3.1 84.7 1,895.4 3.8 295.0 3.8 133.5 4.8 159.0 3.1 1,600.4 3.8 445.9 3.6 660.3 4.4 Forecasts for Tucson Metro Area Personal Income ($ mill) percent change Per Capita Personal Income percent change Aggregate Retail Sales ($ mill)* percent change Population (000s, mid-year) percent change Net Migration (000s) Wage & Salary Employment (000s) percent change Goods-Producing percent change Construction percent change Manufacturing percent change Service-Providing percent change Trade (Wholesale & Retail) percent change Services percent change 2001 21,010.6 4.4 24,133 1.9 8,655.6 1.8 870.6 2.5 16.2 350.7 0.1 57.2 0.5 21.7 -0.8 33.7 1.7 293.5 0.1 72.1 -0.7 117.7 -0.7 2002 21,760.4 3.6 24,473 1.4 8,713.9 0.7 889.2 2.1 13.4 347.4 -1.0 54.7 -4.4 21.1 -2.9 32.1 -4.8 292.7 -0.3 71.2 -1.2 117.0 -0.5 2003 23,124.2 6.3 25,440 4.0 9,194.0 5.5 909.0 2.2 14.4 357.2 2.8 55.6 1.6 21.6 2.2 32.8 2.5 301.6 3.1 72.0 1.1 123.0 5.1 2004 24,918.0 7.8 26,682 4.9 9,801.8 6.6 933.9 2.7 19.2 374.0 4.7 56.5 1.6 21.9 1.6 33.4 1.8 317.5 5.3 74.7 3.7 133.0 8.2 2005 26,606.0 6.8 27,836 4.3 10,350.4 5.6 955.8 2.3 16.1 386.6 3.4 57.5 1.7 22.5 2.6 33.9 1.4 329.2 3.7 77.6 3.9 139.4 4.8 2006 28,415.0 6.8 29,113 4.6 10,923.6 5.5 976.0 2.1 14.2 396.5 2.6 58.3 1.5 23.1 2.6 34.3 1.1 338.2 2.7 80.1 3.3 144.2 3.4 2007 30,196.2 6.3 30,333 4.2 11,444.8 4.8 995.5 2.0 13.3 405.0 2.2 59.0 1.2 23.5 1.8 34.6 1.0 346.0 2.3 82.0 2.3 148.6 3.1 *Aggregate Retail Sales includes retail, food, restaurant & bars and gasoline sales. Source: Economic and Business Research Program, Eller College of Business and Public Administration, The University of Arizona PAGE FOUR ARIZONA’S ECONOMY also note outdated technologies at the state’s Department of Revenue. This is perhaps the best (and unbiased) currently available analysis of state taxation across the country. A second report, from the Institute on Taxation and Economic Policy called “Who Pays,” provides state-by-state measures of regressiveness (low- and middle-income taxpayers pay a larger share of their income than wealthy taxpayers). Findings here show that Arizona’s tax structure has become much more regressive during the 1990s as taxes were shifted from income to sales taxes (nearly one half of all taxes collected today are from transactions). In Arizona, taxpayers in the lowest 20% of the income distribution give 12.5% of their income to state and local taxes. The wealthiest one percent pays only 4.9%. That gives Arizona the dubious distinction of having one of the most regressive systems in the country. As Arizona lawmakers consider changing the structure of taxes, the ability to pay will be a key criterion. The third study, from the Cato Institute titled States Face Fiscal Crunch after 1990s Spending Spree, argues that states simply spent too much during the good times. They propose to limit state spending to the sum of population growth and inflation. The authors then note that from 1990 to 2001, spending in Arizona didn’t grow that much; spending grew by 93%, population growth plus inflation by 96%. Arizona was one of three states that grew less. In other words, spending was not the problem here in Arizona. The fourth study, published by the Center for Business Research at Arizona State University called Public Finance in Arizona, finds that “as a percent of personal income, revenues currently are the lowest since records began in FY 1971.” Moreover, “The combined tax burden in AZ is below the national average… between 11 and 17%…and has dropped considerably since the early 1990s.” Additionally, “Per capita spending on operations in FY 2000 was 5th lowest, 19% below average.” After reading these reports, it is clear that Arizona neither spends nor taxes too much and that both adequacy and fairness of the state’s tax system have been seriously compromised by too much tax cutting in recent years. ■ making up that lost revenue by imposing new taxes, raising existing taxes, or reversing a tax cut requires a two-thirds majority. Even revenue-neutral changes, designed to improve the fairness of the tax structure, require a super-majority because equity adjustments require a tax increase on one group of taxpayers to offset a tax decrease on another group. The supermajority requirement acts like a ratchet, in which tax decreases made during an economic expansion always become permanent. Throughout the 1990s, enormous tax cuts permanently downsized the General Fund. According to the Joint Legislative Budget Committee staff, $1.2 billion was cut from General Fund revenues since 1993. When these JLBC estimates are permitted to grow with population and inflation, the tax cuts are closer to $1.8 billion. This amount, almost 1/3rd of the General Fund, is lost each year. While the idea of continual tax cuts sound good, the sole purpose of taxation is to provide public services. During the decade of the 90s, Arizona teacher salaries dropped from 23rd to 41st among states. (Prop 301, a 0.6 percent increase in sales taxes earmarked for education that boosted teacher salaries, improved the ranking to 36th in FY 2002.) Average per-pupil expenditures in primary and secondary schools fell from 33rd to 49th between 1989 and 2002 and the percentage of 18 to 24-year olds in Arizona who have a high school credential fell from 83% in 1990 to 75% in 1998. While private sector employees enjoyed a 20% increase in real income from 1990 to 2001, state and local government employees suffered a 14.9 percent decline in purchasing power. Public employee salaries are extremely low across the board and our universities are experiencing brain drain as faculty leave to take higher paying positions elsewhere. While handing out politically popular tax cuts, the Legislature balanced the budget on the backs of public employees, teachers, and Arizona’s children. (continued page 6) ARIZONA’S STATE BUDGET MESS SELF INFLICTED By Marshall J. Vest Four new studies released in the past few weeks provide answers to how the state’s budget got into such a deep hole. Contrary to assertions that the recession and too much government spending caused current budget woes, it is clear that the deficits resulted from overzealous tax cutting and failure to adequately fund the Budget Stabilization Fund (commonly known as the rainy day fund). Beginning in fiscal year 1993, legislators approved a series of tax cuts totaling more than $1.2 billion dollars. That is one third of the taxes collected in fiscal year 1992! Adjusted to growth in population and inflation, these cuts approach $1.8 billion in today’s dollars (compared to a $6 billion general fund budget). The February 2003 issue of Governing magazine gives Arizona two stars on adequacy, fairness, and administration. Two stars mean that the state could continue to function, but there are clear elements that could benefit from change. Due to large tax cuts during the past decade, both adequacy and fairness of the system have suffered greatly. Editors THE BUDGET CRISIS WAS PREDICTABLE By Alberta H. Charney, Ph.D. Five factors caused the current budget crises and both the crises and the severity of the crisis were entirely predictable. In 1994’s Arizona’s Economy, I wrote: “The combination of (1) under funding the rainy day fund during an upswing period, (2) numerous tax cuts which are likely to permanently downsize the General Fund, (3) a super-majority requirement for all tax increases, (4) the strong cyclicality of revenues, and (5) an increased demand for social services during recessions will result in severe expenditure cuts in some government services in the next economic downturn.” In 1992, a referendum passed that required a super-majority (2/3rds) of the Legislature to pass a tax increase. Tax cuts can be implemented by a 50% majority, but ARIZONA’S ECONOMY PAGE FIVE (continued from page 5) The Budget Stabilization Fund (aka the Rainy Day Fund) was established in 1990 to smooth out the fluctuations in Arizona’s revenue streams. Although a wonderful idea, the fund has failed to adequately serve the needs of the state. The fund is limited to seven percent of the General Fund, but the three major sources of revenue – sales, individual income, and corporate income taxes – can fall by as much as 15%, 10% and 30%, respectively, during economic downturns. Since these revenue sources comprise 94 percent of all tax revenues to the General Fund, the seven percent limit is too low to adequately cover even one year of a recession. To make matters worse, recessions typically impact more than one fiscal budget. Finally, the funding formulas are designed only to smooth out revenue fluctuations, not to account for recession-induced increases in the number of families qualifying for public support and health care. Approximately $800 million of the $1 billion deficit projected for FY03-04 is due to increasing caseloads in AHCCCS and welfare, and more students in public schools. These increases either are voter mandated, court ordered or formula driven. These factors work together to create a structural deficit that isn’t going away anytime soon. During the prosperous decade of the 1990s, the Legislature chose to significantly cut the level of public services in Arizona. With the funding of public services already at an all-time low, budget cuts may literally destroy some of our public institutions and seriously compromise Arizona’s ability to compete in high-tech industries of the New Economy. The combination of volatile revenues, recessions that last more than one fiscal year, and the burgeoning of families eligible for social services during a recession suggests that the Budget Stabilization Fund limit be increased to 40 percent of the General Fund. The super-majority should be eliminated through a referendum so that the elected Legislature can make critical decisions regarding the structure of the tax system and the level of taxation, through a majority vote. Additionally, future tax cuts should be temporary so that revenues are available during the next recession. In the meantime, the Legislature is hamstrung in any attempts to raise critical revenues or restructure the tax system, thereby denying Arizonans needed public services and the infrastructure upon which to build a 21st century economy. ■ PAGE SIX Now taking orders for the 2003 Arizona Statistical Abstract T Arizona ract t Statistical A3bs 200 book Data Hand Data 00 Census 0 2 s e d lu c In ogram Research Pr istration d Business min Economic an siness and Public Ad of Bu ona Eller College The University of Ariz izona Tucson, Ar he authoritative source for economic and social information for Arizona and its political subdivisions, the 2003 Arizona Statistical Abstract includes data on physical resources of the state, human resources (such as population, vital statistics, health, education, employment and welfare), public sector activities, and various economic measures such as output, sales, jobs, etc. Included are statistics from numerous sources such as the 2000 Census of Population and Housing, Economic Censuses, Annual Survey of Manufacturers, and County Business Patterns, to name a few. Data are presented by jurisdiction as well as comparisons to other states. The presentation is both comprehensive and concise. The new 2003 edition of the Arizona Statistical Abstract will be published by the end of April 2003. Order your copy now by filling out the form below and return it by mail with a check payable to Economic and Business Research. ORDER FORM Mail to: Economic and Business Research Eller College of Business and Public Administration McClelland Hall 103 $54.95 each (includes $5.00 shipping and handling) The University of Arizona $70.00 each international order (includes S&H) P.O. Box 210108 ❑ check enclosed ❑ send invoice Tucson, AZ 85721-0108 All orders must be prepaid prior to shipment. I would like ____ copies of the 2003 Arizona Statistical Abstract at AE 4/03 Fax to: (520) 621-2150 Name__________________________________________________________________ Title ___________________________________________________________________ Organization _____________________________________________________________ Address ________________________________________________________________ City _____________________________ State _____________ Zip ________________ Telephone_________________________ Fax__________________________________ E-mail _________________________________________________________________ ARIZONA’S ECONOMY A R I Z O N A YUMA METROPOLITAN REGION Civilian Labor Force, ADES Employment Unemployment Unemployment Rate (%) Employees on Nonagricultural Payrolls, ADES Total Construction Manufacturing Trans., Comm. & Publ. Util. Trade Finance, Ins. & Real Estate Services Government Sales ($000s) ADOR Gross Retail Retail Restaurants & Bars Gasoline, EBR Gallons (000s) ADOT Contracting Value of Construction Contract Awards ($000s) F.W. Dodge Total Residential Building Non-Residential Building Non-Building Number of Dwelling Units Awarded, F.W. Dodge Total One Family Houses MOHAVE-LA PAZ REGION Civilian Labor Force, ADES Employment Unemployment Unemployment Rate (%) Employees on Nonagricultural Payrolls, ADES Total Mining (Mohave County only) Construction Manufacturing Trans., Comm. & Publ. Util. Trade Finance, Ins. & Real Estate Services Government Sales ($000s) ADOR Gross Retail Retail Restaurants & Bars Gasoline, EBR Gallons (000s) ADOT Contracting Value of Construction Contract Awards ($000s) F.W. Dodge Total Residential Building Non-Residential Building Non-Building Number of Dwelling Units Awarded, F.W. Dodge Total One Family Houses E C O N O M I C I N D I C A T O R S % change versus year ago for: most most recent recent month 12-months AUG 2002 SEP 2002 OCT 2002 NOV 2002 DEC 2002 73,050 48,800 24,250 33.2 69,925 48,950 20,975 30.0 67,900 50,675 17,225 25.4 65,250 51,225 14,025 21.5 63,675 52,350 11,325 17.8 6.2 3.9 18.3 11.4 1.2 2.6 -3.0 -4.9 39,875 2,950 1,850 1,600 10,050 1,300 10,200 11,925 40,375 2,950 1,775 1,600 10,200 1,325 10,250 12,275 41,375 2,925 1,775 1,625 10,650 1,375 10,375 12,650 42,325 2,900 1,800 1,650 11,150 1,425 10,650 12,750 44,000 2,850 2,300 1,750 12,350 1,450 10,775 12,525 0.5 1.8 1.1 11.1 -3.1 5.5 2.1 0.6 0.7 0.8 -16.5 10.4 -2.4 2.4 4.4 2.6 84,127 64,560 8,916 10,651 7,570 14,406 85,996 67,556 8,593 9,847 7,111 17,825 88,028 68,209 9,604 10,215 7,578 27,758 105,230 83,658 10,331 11,241 8,349 18,458 132,285 108,081 12,376 11,828 9,070 23,698 8.7 6.6 9.6 30.1 2.3 9.8 3.7 3.5 7.2 1.9 9.3 19.5 NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA 78,450 74,375 4,075 5.2 78,225 74,075 4,150 5.3 77,400 73,425 3,975 5.1 77,275 73,425 3,850 5.0 77,025 73,250 3,775 4.9 4.1 4.2 3.4 -0.7 5.0 4.5 15.7 10.2 48,350 75 4,825 3,375 2,350 13,975 1,675 11,550 10,525 48,425 75 4,975 3,350 2,350 13,950 1,700 11,400 10,625 48,500 75 5,050 3,350 2,425 14,000 1,700 11,250 10,650 48,950 75 5,100 3,325 2,425 14,350 1,675 11,225 10,775 49,275 75 5,075 3,300 2,425 14,225 1,675 11,275 11,225 2.7 0 9.7 -2.9 3.2 -0.7 9.8 1.8 5.9 0.8 -21.7 -1.0 -2.4 1.9 0.0 6.0 -0.3 4.4 129,948 95,251 14,089 20,608 14,648 29,884 110,225 81,847 13,795 14,583 10,531 28,737 140,626 112,868 13,326 14,432 10,707 33,926 118,283 90,564 14,825 12,894 9,577 27,394 139,148 109,501 14,752 14,895 11,421 29,018 9.6 7.1 9.1 32.9 4.5 0.6 8.1 10.6 5.6 -3.0 4.0 17.9 NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA See notes at bottom of Arizona - Quarterly table. ARIZONA’S ECONOMY PAGE SEVEN A R I Z O N A COCHISE COUNTY Civilian Labor Force, ADES Employment Unemployment Unemployment Rate (%) Employees on Nonagricultural Payrolls, ADES Total Construction Manufacturing Trans., Comm. & Publ. Util. Trade Finance, Ins. & Real Estate Services Government Sales ($000s) ADOR Gross Retail Retail Restaurants & Bars Gasoline, EBR Gallons (000s) ADOT Contracting Value of Construction Contract Awards ($000s) F.W. Dodge Total Residential Building Non-Residential Building Non-Building Number of Dwelling Units Awarded, F.W. Dodge Total One Family Houses SANTA CRUZ COUNTY Civilian Labor Force, ADES Employment Unemployment Unemployment Rate (%) Employees on Nonagricultural Payrolls, ADES Total Construction Manufacturing Trans., Comm. & Publ. Util. Trade Finance, Ins. & Real Estate Services Government Sales ($000s) ADOR Gross Retail Retail Restaurants & Bars Gasoline, EBR Gallons (000s) ADOT Contracting Value of Construction Contract Awards ($000s) F.W. Dodge Total Residential Building Non-Residential Building Non-Building Number of Dwelling Units Awarded, F.W. Dodge Total One Family Houses E C O N O M I C I N D I C A T O R S % change versus year ago for: most most recent recent month 12-months AUG 2002 SEP 2002 OCT 2002 NOV 2002 DEC 2002 42,750 40,550 2,200 5.1 42,200 40,125 2,075 4.9 42,250 40,175 2,075 4.9 42,325 40,225 2,100 5.0 42,400 40,275 2,125 5.0 2.5 2.3 7.6 4.9 2.8 2.1 17.2 14.1 32,900 2,175 900 1,250 7,550 775 9,025 11,225 32,825 2,100 900 1,225 7,575 775 8,850 11,400 32,900 2,050 850 1,225 7,750 800 8,775 11,450 33,250 2,000 800 1,225 7,950 800 8,900 11,575 33,325 1,975 800 1,225 8,000 775 8,925 11,625 -0.2 -6.0 -13.5 -5.8 -0.6 6.9 -0.8 2.9 -0.6 -4.1 -11.6 -3.2 -2.1 2.2 -0.1 2.0 63,643 49,625 6,938 7,080 5,032 11,733 59,674 46,048 7,166 6,460 4,665 13,109 61,957 48,470 7,215 6,272 4,654 11,632 63,693 50,212 7,294 6,187 4,595 13,488 87,032 72,259 7,983 6,790 5,207 15,838 12.6 13.8 -1.2 19.2 -6.2 19.0 5.3 3.8 7.7 14.8 21.2 14.7 NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA 14,925 12,150 2,775 18.6 14,575 11,850 2,725 18.7 14,600 12,050 2,550 17.5 14,100 12,300 1,800 12.8 14,050 12,550 1,500 10.7 4.7 5.5 -1.6 -6.0 4.6 4.6 4.6 0.3 12,250 425 750 1,200 4,450 400 1,475 3,550 12,075 425 725 1,200 4,475 425 1,500 3,325 12,375 425 725 1,225 4,625 425 1,625 3,325 12,625 425 700 1,275 4,775 425 1,625 3,400 13,000 425 700 1,300 5,050 450 1,650 3,425 3.2 6.3 -20.0 6.1 3.6 0.0 6.5 6.2 2.2 1.0 -18.8 3.3 4.8 -3.0 -0.4 6.4 27,866 22,112 2,703 3,051 2,169 4,531 24,589 19,361 2,495 2,733 1,974 3,666 27,108 21,767 2,606 2,735 2,029 4,205 30,417 24,952 2,613 2,852 2,119 3,507 40,643 34,242 3,421 2,980 2,285 3,874 7.6 6.7 18.1 6.8 -16.0 15.0 2.4 4.3 1.1 -9.7 -3.1 1.7 NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA See notes at bottom of Arizona - Quarterly table. PAGE EIGHT ARIZONA’S ECONOMY A R I Z O N A GILA COUNTY Civilian Labor Force, ADES Employment Unemployment Unemployment Rate (%) Employees on Nonagricultural Payrolls, ADES Total Mining Construction Manufacturing Trans., Comm. & Publ. Util. Trade Finance, Ins. & Real Estate Services Government Sales ($000s) ADOR Gross Retail Retail Restaurants & Bars Gasoline, EBR Gallons (000s) ADOT Contracting Value of Construction Contract Awards ($000s) F.W. Dodge Total Residential Building Non-Residential Building Non-Building Number of Dwelling Units Awarded, F.W. Dodge Total One Family Houses GRAHAM-GREENLEE REGION Civilian Labor Force, ADES Employment Unemployment Unemployment Rate (%) Employees on Nonagricultural Payrolls, ADES Total Mining (Greenlee County only) Construction Manufacturing Trans., Comm. & Publ. Util. Trade Finance, Ins. & Real Estate Services Government Sales ($000s) ADOR Gross Retail Retail Restaurants & Bars Gasoline, EBR Gallons (000s) ADOT Contracting Value of Construction Contract Awards ($000s) F.W. Dodge Total Residential Building Non-Residential Building Non-Building Number of Dwelling Units Awarded, F.W. Dodge Total One Family Houses E C O N O M I C I N D I C A T O R S % change versus year ago for: most most recent recent month 12-months AUG 2002 SEP 2002 OCT 2002 NOV 2002 DEC 2002 18,025 16,675 1,350 7.5 17,650 16,350 1,300 7.4 17,200 16,000 1,200 7.0 17,300 16,050 1,250 7.2 17,200 15,975 1,225 7.1 0.0 -0.5 6.5 6.5 1.3 -0.5 29.5 27.7 13,775 650 825 875 475 3,075 275 2,900 4,700 13,675 650 825 850 475 3,100 275 2,850 4,650 13,575 625 800 850 475 3,100 275 2,750 4,700 13,625 650 800 850 475 3,175 275 2,750 4,650 13,575 625 800 850 475 3,200 275 2,700 4,650 -2.2 -7.4 -17.9 -10.5 0.0 1.6 0.0 -3.6 1.6 -3.0 -5.4 -17.5 -11.3 0.4 0.5 -3.7 -2.0 -1.0 27,140 19,552 4,302 3,286 2,336 7,758 24,902 18,357 3,725 2,820 2,036 8,676 24,408 18,162 3,580 2,666 1,978 7,455 24,268 18,676 3,259 2,333 1,733 7,591 30,332 23,752 3,992 2,588 1,984 8,310 8.3 6.2 9.9 28.8 1.3 0.5 -3.8 -2.1 -2.2 -15.8 -9.6 0.6 NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA 13,850 12,725 1,125 8.1 13,875 12,775 1,100 7.9 14,100 13,025 1,075 7.6 13,925 12,875 1,050 7.5 13,850 12,800 1,050 7.6 2.6 3.9 -10.6 -12.9 -1.0 -1.1 0.2 1.2 10,025 2,125 475 300 200 2,250 200 1,475 3,000 10,175 2,125 450 275 200 2,225 200 1,450 3,250 10,325 2,225 450 275 225 2,250 175 1,450 3,275 10,300 2,100 450 275 225 2,300 175 1,450 3,325 10,275 2,100 425 275 225 2,325 175 1,450 3,300 1.0 -1.2 0.0 -15.4 0.0 -1.1 -12.5 -7.9 11.9 -4.2 -8.1 -25.1 -10.6 -8.3 -0.2 -10.6 -7.9 3.1 19,096 16,090 1,304 1,702 1,210 3,926 18,099 15,110 1,354 1,635 1,181 6,809 18,252 14,612 1,912 1,728 1,282 3,617 19,606 16,739 1,333 1,534 1,140 6,157 22,998 19,892 1,574 1,532 1,175 3,801 21.3 23.7 -7.6 30.4 2.6 14.6 -5.4 -6.0 -0.1 -4.8 1.3 8.0 NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA See notes at bottom of Arizona - Quarterly table. ARIZONA’S ECONOMY PAGE NINE A R I Z O N A APACHE-NAVAJO REGION Civilian Labor Force, ADES Employment Unemployment Unemployment Rate (%) Employees on Nonagricultural Payrolls, ADES Total Mining Construction Manufacturing Trans., Comm. & Publ. Util. Trade Finance, Ins. & Real Estate Services Government Sales ($000s) ADOR Gross Retail Retail Restaurants & Bars Gasoline, EBR Gallons (000s) ADOT Contracting Value of Construction Contract Awards ($000s) F.W. Dodge Total Residential Building Non-Residential Building Non-Building Number of Dwelling Units Awarded, F.W. Dodge Total One Family Houses COCONINO-YAVAPAI REGION Civilian Labor Force, ADES Employment Unemployment Unemployment Rate (%) Employees on Nonagricultural Payrolls, ADES Total Mining Construction Manufacturing Trans., Comm. & Publ. Util. Trade Finance, Ins. & Real Estate Services Government Sales ($000s) ADOR Gross Retail Retail Restaurants & Bars Gasoline, EBR Gallons (000s) ADOT Contracting Value of Construction Contract Awards ($000s) F.W. Dodge Total Residential Building Non-Residential Building Non-Building Number of Dwelling Units Awarded, F.W. Dodge Total One Family Houses E C O N O M I C I N D I C A T O R S % change versus year ago for: most most recent recent month 12-months AUG 2002 SEP 2002 OCT 2002 NOV 2002 DEC 2002 53,350 47,500 5,850 11.0 52,400 47,275 5,125 9.8 51,050 46,000 5,050 9.9 51,575 45,775 5,800 11.2 51,475 45,550 5,925 11.5 1.0 -0.6 15.6 14.4 1.1 0.9 2.9 1.7 46,200 850 1,950 1,125 2,625 7,675 1,375 7,550 23,050 46,400 850 1,900 1,100 2,600 7,475 1,375 7,475 23,625 45,575 850 1,875 1,100 2,625 7,375 1,350 7,475 22,925 45,500 850 1,875 1,100 2,625 7,450 1,350 7,150 23,100 45,400 825 1,875 1,075 2,600 7,525 1,375 7,000 23,125 -2.4 -2.9 -9.6 -4.4 0.0 -3.8 0.0 -1.1 -1.9 -1.7 -3.9 -13.7 -1.7 3.0 -3.4 -1.8 -0.9 -0.7 98,622 79,515 7,681 11,426 8,122 20,176 72,835 55,270 7,097 10,468 7,559 18,691 77,541 61,134 5,997 10,410 7,723 21,693 70,830 56,011 4,986 9,833 7,303 19,057 76,033 61,347 5,452 9,234 7,081 22,490 7.4 4.5 2.5 37.1 7.9 18.1 3.5 4.7 3.9 -2.8 3.4 6.2 NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA 139,950 134,325 5,625 4.0 136,825 131,525 5,300 3.9 138,875 133,500 5,375 3.9 137,975 132,025 5,950 4.3 136,950 130,900 6,050 4.4 1.7 1.7 2.1 0.4 4.2 3.8 12.2 7.6 111,475 875 7,700 6,300 3,050 29,075 2,925 32,475 29,075 112,425 875 7,725 6,300 3,000 28,975 2,925 32,075 30,550 112,825 875 7,750 6,275 3,025 29,300 2,950 31,925 30,725 111,975 850 7,625 6,200 2,875 29,150 2,925 31,575 30,775 110,850 850 7,600 6,200 2,925 29,200 2,925 31,450 29,700 -0.4 -22.7 2.0 -2.7 -1.7 3.4 0.9 0.0 -3.6 1.3 -26.4 1.1 -2.7 0.7 2.8 0.6 1.3 2.1 245,559 175,307 40,646 29,606 21,043 67,040 228,751 163,611 39,286 25,854 18,670 64,157 220,143 156,670 37,909 25,564 18,966 68,008 213,649 160,170 32,271 21,208 15,752 61,285 254,541 194,976 34,193 25,372 19,455 69,425 6.9 8.0 9.4 -3.3 -23.9 24.3 3.9 5.5 1.8 -2.9 2.1 7.7 NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA See notes at bottom of Arizona - Quarterly table. PAGE TEN ARIZONA’S ECONOMY A R I Z O N A E C O N O M I C PHOENIX-MESA METROPOLITAN REGION (MARICOPA AND PINAL) Civilian Labor Force (000s) ADES Employment Unemployment Unemployment Rate, Seas. Adj. (%) Employees on Nonagricultural Payrolls (000s) ADES Total Mining Construction Manufacturing Durable Nondurable Trans., Comm. & Publ. Util. Trade Wholesale Retail Finance, Ins. & Real Estate Services Government Sales ($000s) ADOR Aggregate Retail Sales Retail Food, EBR Restaurants & Bars Gasoline, EBR Contracting Value of Construction Contract Awards ($000s) F.W. Dodge Total Awards Residential Building Non-Residential Building Non-Building New Housing Units Authorized, Census C-40 Total Units Single Family Units 2-4 Unit Structures 5-plus Unit Structures Housing Sales and Prices, ARMLS Total Sales ($000s) Total Units Average Price ($) Phoenix Skyharbor International Airport, PSIA Total Passengers Total Aircraft Movements I N D I C A T O R S AUG 2002 SEP 2002 OCT 2002 NOV 2002 DEC 2002 1,686.0 1,593.7 92.3 5.1 1,679.4 1,588.6 90.8 5.0 1,679.4 1,589.0 90.4 5.1 1,686.5 1,598.1 88.4 5.3 1,686.1 1,601.8 84.3 5.2 1.6 1.9 -4.0 -5.5 3.1 1.6 40.3 37.9 1,561.7 2.3 119.0 145.5 112.7 32.8 81.3 378.0 87.1 290.9 124.2 511.6 199.8 1,575.1 2.3 119.1 144.8 111.9 32.9 80.9 377.7 87.2 290.5 123.7 512.3 214.3 1,591.1 2.3 121.2 144.0 110.9 33.1 80.9 381.4 87.1 294.3 123.9 517.5 219.9 1,606.6 2.2 120.3 143.0 110.0 33.0 80.9 390.5 86.7 303.8 124.1 519.3 226.3 1,604.9 2.1 119.3 142.7 109.9 32.8 81.1 394.5 87.1 307.4 124.3 520.9 220.0 -0.0 -8.7 2.0 -6.5 -7.7 -2.1 -4.8 -0.3 -2.9 0.5 -2.8 1.8 3.3 -1.0 -3.5 -3.3 -8.4 -9.4 -4.5 -5.9 0.7 -2.4 1.6 -1.3 -0.5 4.0 3,083,025 2,201,130 367,936 324,327 189,631 670,249 3,011,537 2,105,668 378,378 355,447 172,044 663,829 3,064,337 2,113,549 391,353 381,790 177,645 669,893 3,182,996 2,231,413 396,379 376,656 178,548 657,936 3,936,327 2,958,848 397,649 403,029 176,801 768,738 4.9 4.1 -0.4 5.7 37.2 -0.3 0.6 0.1 1.3 3.3 0.1 -2.1 NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA 4,148 3,537 57 554 3,862 3,180 21 661 4,263 4,023 43 217 3,288 2,800 34 454 3,897 2,689 40 1,168 42.7 33.6 5.3 71.5 12.1 18.8 -37.3 -12.9 1,019,549 5,519 184,734 944,066 5,262 179,412 1,003,438 5,406 185,616 954,636 5,064 188,514 ... ... ... 24.7 14.1 9.4 8.4 2.7 5.3 3,126,697 47,183 2,553,859 44,256 3,003,824 47,810 2,879,775 45,394 3,158,765 46,647 18.2 10.3 0.3 -1.4 PHOENIX-MESA METROPOLITAN REGION (MARICOPA AND PINAL) - QUARTERLY DATA Demographics & Vital Statistics (000s, seas adj) ADHS & EBR Population Natural Increase Births Deaths Net Migration Personal Income by Source ($mil, SAAR) EBR Total Personal Income Earnings by Place of Work Less: Contributions for Social Insurance Plus: Adjustment for Residence Plus: Dividends, Interest & Rents Plus: Transfer Payments Per Capita Personal Income ($, SAAR) EBR % change versus year ago for: most most recent recent month 12-months % change versus year ago for: most most recent recent quarter 4-quarters IV 2001 I 2002 II 2002 III 2002 IV 2002 3,411.3 8.5 14.5 6.0 14.7 3,431.6 8.6 14.6 6.1 11.7 3,450.1 8.5 14.6 6.1 10.1 3,467.8 8.4 14.5 6.1 9.3 3,482.8 8.3 14.4 6.2 6.8 2.1 -2.1 -0.4 2.0 -53.9 2.4 -0.6 0.5 2.0 -36.1 93,757 70,700 4,355 -50 16,270 11,191 27,484 94,483 71,148 4,398 -48 16,236 11,546 27,533 95,074 71,444 4,429 -48 16,208 11,899 27,557 95,665 71,741 4,460 -47 16,180 12,252 27,587 96,256 72,037 4,491 -47 16,152 12,605 27,637 2.7 1.9 3.1 5.5 -0.7 12.6 0.6 2.5 1.7 2.9 4.1 -0.7 13.2 0.1 See notes at bottom of Arizona - Quarterly table. ARIZONA’S ECONOMY PAGE ELEVEN A R I Z O N A E C O N O M I C TUCSON METROPOLITAN REGION (PIMA) Civilian Labor Force (000s) ADES Employment Unemployment Unemployment Rate, Seas. Adj. (%) Employees on Nonagricultural Payrolls (000s) ADES Total Mining Construction Manufacturing Durable Nondurable Trans., Comm. & Publ. Util. Trade Wholesale Retail Finance, Ins. & Real Estate Services Government Sales ($000s) ADOR Aggregate Retail Sales Retail Food, EBR Restaurants & Bars Gasoline, EBR Contracting Value of Construction Contract Awards ($000s) F.W. Dodge Total Awards Residential Building Non-Residential Building Non-Building New Housing Units Authorized, Census C-40 adjusted by EBR Total Units Single Family Units 2-5-plus Unit Structures Housing Sales and Prices, TAR Total Sales ($000s) Total Units Average Price ($) Tucson International Airport, TAA Total Passengers Total Aircraft Movements I N D I C A T O R S DEC 2002 AUG 2002 SEP 2002 OCT 2002 NOV 2002 401.4 382.9 18.5 4.5 405.0 387.0 18.0 4.2 406.1 388.6 17.5 4.1 408.4 390.3 18.1 4.4 411.8 394.2 17.6 4.2 2.4 2.5 0.0 -2.3 2.9 1.8 34.6 31.3 338.0 1.5 22.2 32.0 27.5 4.5 10.7 69.2 9.9 59.3 15.1 114.7 72.6 345.8 1.5 22.2 32.0 27.5 4.5 10.6 69.9 10.0 59.9 15.1 115.1 79.4 351.2 1.4 22.2 32.0 27.4 4.6 10.7 71.3 10.1 61.2 15.3 116.5 81.8 353.9 1.4 22.4 31.4 26.9 4.5 10.7 73.2 10.2 63.0 15.3 116.8 82.7 356.1 1.3 22.5 31.8 27.3 4.5 10.7 73.9 10.0 63.9 15.4 117.3 83.2 0.6 -27.8 5.1 -4.8 -4.5 -6.3 -4.5 -0.4 -3.8 0.2 2.0 1.9 1.6 -0.9 -21.7 -1.6 -5.0 -4.3 -9.5 -8.3 -1.1 -2.9 -0.7 2.7 -0.4 1.5 721,638 509,843 88,988 77,143 45,664 123,257 666,283 448,974 91,514 80,483 45,312 117,242 686,294 459,187 94,652 83,208 49,247 138,597 714,109 486,959 95,867 85,393 45,890 132,331 886,690 652,675 96,175 90,409 47,431 140,488 1.2 0.4 -2.5 -1.2 33.6 10.1 0.6 0.9 -0.8 2.5 -3.1 -0.5 NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA 709 679 30 747 493 254 979 508 472 586 484 102 516 497 19 -11.5 5.8 -83.4 -1.9 3.4 -21.3 189,735 1,063 178,490 153,600 942 163,058 185,340 1,111 166,822 158,511 883 179,514 187,037 1,022 183,011 46.2 32.0 10.7 14.1 7.4 6.4 277,308 22,888 239,291 20,546 291,967 25,887 291,978 22,367 318,093 23,017 14.2 15.6 -3.2 4.8 TUCSON METROPOLITAN REGION (PIMA) - QUARTERLY DATA Demographics & Vital Statistics (000s, seas adj) ADHS & EBR Population Natural Increase Births Deaths Net Migration Personal Income by Source ($mil, SAAR) EBR Total Personal Income Earnings by Place of Work Less: Contributions for Social Insurance Plus: Adjustment for Residence Plus: Dividends, Interest & Rents Plus: Transfer Payments Per Capita Personal Income ($, SAAR) EBR % change versus year ago for: most most recent recent month 12-months IV 2002 % change versus year ago for: most most recent recent quarter 4-quarters IV 2001 I 2002 II 2002 III 2002 877.4 1.3 3.1 1.8 3.3 882.0 1.3 3.1 1.8 3.3 886.7 1.3 3.1 1.9 3.4 891.6 1.3 3.2 1.9 3.6 895.9 1.3 3.2 1.9 2.9 2.1 2.9 2.3 1.8 -12.4 2.1 2.6 2.2 2.0 -8.5 21,290 13,399 797 95 5,006 3,588 24,264 21,479 13,466 803 95 5,028 3,694 24,352 21,667 13,525 810 96 5,051 3,804 24,434 21,854 13,585 816 96 5,074 3,914 24,510 22,042 13,645 822 97 5,098 4,024 24,604 3.5 1.8 3.1 2.0 1.8 12.2 1.4 3.6 1.8 3.1 2.5 1.9 12.9 1.4 See notes at bottom of Arizona - Quarterly table. PAGE TWELVE ARIZONA’S ECONOMY A R I Z O N A E C O N O M I C ARIZONA MONTHLY DATA Civilian Labor Force (000s) ADES Employment Unemployment Unemployment Rate, Seas. Adj. (%) Employees on Nonagricultural Payrolls (000s) ADES Total Mining Construction Manufacturing Durable Nondurable Trans., Comm. & Publ. Util. Transportation Trade Wholesale Retail Finance, Ins. & Real Estate Services Government Federal State & Local Schools Hours Worked Per Week, Manufacturing, ADES Average Hourly Earnings ($) ADES Construction Manufacturing Utilities Retail Trade Wholesale Trade Sales ($000s) ADOR Aggregate Retail Sales Retail Food, EBR Restaurants & Bars Gasoline, EBR Gallons (000s) ADOT Utilities Communications Amusements Rentals - Personal Property Contracting Mining - Metal, Oil & Gas Hotel/Motel Value of Construction Contract Awards ($000s) F.W. Dodge Total Residential Building Non-Residential Building Non-Building New Housing Units Authorized, Census C-40 Total Units Single Family Units 2-4 Unit Structures 5-plus Unit Structures Bankruptcy Filings, U.S. Bankruptcy Court Total Chapter 7 Chapter 11 Chapter 13 I N D I C A T O R S % change versus year ago for: most most recent recent month 12-months AUG 2002 SEP 2002 OCT 2002 NOV 2002 DEC 2002 2,521.5 2,363.6 157.9 5.7 2,510.1 2,358.6 151.5 5.7 2,508.9 2,362.5 146.4 5.7 2,514.7 2,372.3 142.4 5.8 2,514.5 2,379.7 134.8 5.6 1.9 2.1 -0.5 -3.4 3.1 1.8 28.2 24.1 2,220.0 8.5 161.1 194.1 150.9 43.2 104.8 67.6 527.7 106.5 421.2 148.6 706.2 369.0 50.4 318.6 162.8 39.6 2,243.6 8.4 161.0 193.2 150.0 43.2 104.3 67.6 527.8 107.0 420.8 148.3 707.3 393.3 50.0 343.3 188.3 39.8 2,265.9 8.5 163.0 192.4 148.9 43.5 104.2 67.6 533.7 107.4 426.3 148.6 713.6 401.9 50.8 351.1 195.7 39.5 2,284.9 8.3 162.1 190.6 147.2 43.4 104.2 67.6 546.0 107.1 438.9 148.9 714.9 409.9 51.5 358.4 197.5 39.8 2,286.9 8.0 161.5 191.3 147.5 43.8 104.3 67.8 552.0 108.0 444.0 149.1 716.8 403.9 52.4 351.5 197.5 39.9 0.2 -12.1 1.4 -5.5 -6.7 -1.1 -4.7 -2.9 0.1 -3.2 1.0 -2.1 1.7 2.4 4.2 2.2 3.7 -0.5 -0.8 -9.3 -3.6 -7.3 -8.1 -4.4 -5.3 -4.6 0.5 -2.3 1.3 -0.7 -0.3 2.9 3.5 2.8 3.6 -0.6 14.86 13.89 22.79 12.43 14.50 14.83 13.94 23.47 12.65 14.61 14.89 14.00 24.04 12.49 14.19 14.89 14.03 23.86 12.51 14.33 14.84 14.25 23.27 12.57 14.68 -3.9 4.3 4.4 5.5 4.9 -4.0 5.5 8.9 6.9 -0.3 4,632,596 3,232,985 588,857 488,049 322,705 229,373 615,257 225,911 53,642 249,909 952,960 19,966 100,227 4,438,566 3,021,802 605,568 519,441 291,756 210,684 617,474 222,552 44,133 273,631 942,741 24,781 111,209 4,549,023 3,074,628 626,334 547,147 300,914 223,247 537,545 230,174 71,241 299,225 986,784 22,298 147,752 4,685,212 3,219,354 634,377 538,961 292,520 217,261 409,075 248,168 68,468 271,080 947,204 58,005 128,654 5,748,614 4,235,573 636,410 577,181 299,450 229,622 431,351 281,650 62,030 292,967 1,085,680 24,702 119,475 4.9 4.1 1.2 4.8 30.6 2.7 -2.2 11.1 4.7 3.0 3.2 51.4 13.5 1.4 1.0 3.0 3.2 -0.9 5.8 1.4 4.0 6.9 -5.8 0.0 5.5 -3.9 NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA 5,516 4,851 104 561 5,297 4,294 96 907 5,876 5,228 105 543 4,537 3,810 77 650 5,085 3,721 82 1,282 36.5 27.2 18.8 75.4 11.6 15.3 -9.5 -5.8 2,725 2,204 24 496 2,480 1,983 22 474 2,778 2,212 18 547 2,373 1,876 18 479 2,233 1,728 14 490 7.5 6.1 -17.6 13.4 16.6 15.1 -0.7 24.0 See notes at bottom of Arizona - Quarterly table. ARIZONA’S ECONOMY PAGE THIRTEEN A R I Z O N A E C O N O M I C ARIZONA QUARTERLY DATA Demographics & Vital Statistics (000s, seas adj) ADHS & EBR Population Natural Increase Births Deaths Net Migration Personal Income Derivation ($mil, SAAR) EBR Total Personal Income Earnings by Place of Work Less: Contributions for Social Insurance Plus: Adjustment for Residence Plus: Dividends, Interest & Rents Plus: Transfer Payments Components of Earnings ($mil, SAAR) BEA Wages and Salaries Other Labor Income Proprietor’s Income Farm Nonfarm Per Capita Personal Income ($, SAAR) EBR Average Wage Per Employee, Annual Rate ($) EBR I N D I C A T O R S % change versus year ago for: most most recent recent quarter 4-quarters IV 2001 I 2002 II 2002 III 2002 IV 2002 5,378.0 11.2 21.4 10.2 24.9 5,411.5 10.6 21.1 10.5 20.2 5,440.8 10.4 21.1 10.7 17.4 5,467.6 10.4 21.2 10.8 15.2 5,493.4 10.3 21.3 10.9 15.7 2.1 -7.9 -0.6 7.5 -37.0 2.5 -5.5 -0.6 4.8 -36.3 137,895 96,935 5,988 454 26,689 19,805 141,877 99,766 6,260 466 27,197 20,708 142,605 99,638 6,249 465 27,437 21,313 143,285 100,317 6,290 468 27,142 21,650 144,979 101,993 6,404 475 27,024 21,893 5.1 5.2 6.9 4.6 1.3 10.5 4.3 3.5 5.6 1.8 1.6 12.6 78,554 8,491 9,890 377 9,513 25,640 34,368 79,233 8,705 10,698 915 9,784 26,218 34,649 80,363 8,959 10,274 268 10,006 26,210 35,191 81,312 9,191 10,507 365 10,141 26,206 35,599 ... ... ... ... ... 26,392 ... 1.9 8.5 4.9 15.1 4.5 2.9 2.7 1.8 7.4 4.2 50.9 2.6 1.7 2.7 TRAVEL AND TOURISM - MONTHLY DATA AUG 2002 Visits to Parks & Other Recreational Areas, ADOT, NPS & ASPB Northern Arizona Historical Scenic Water Based Recreation Southern Arizona Historical Scenic Water Based Recreation International Border Crossings, USINS & USCS U.S. Citizens Aliens Vehicles SEP 2002 OCT 2002 NOV 2002 DEC 2002 2,183,827 135,563 684,190 1,364,074 143,167 20,772 88,545 33,850 1,601,720 128,875 460,485 1,012,360 96,631 19,541 51,970 25,120 1,357,160 129,697 467,817 759,646 163,331 28,200 107,146 27,985 903,554 90,875 315,281 497,398 189,581 32,056 137,672 19,853 747,292 70,844 226,446 450,002 194,403 38,780 145,327 10,296 2.7 8.9 -14.7 13.4 -6.4 -13.5 -3.3 -18.5 -7.8 -5.1 -3.3 -10.4 -13.6 -16.5 -14.4 -7.0 862,826 2,340,636 911,075 802,188 2,150,381 887,222 842,304 2,243,959 935,176 793,992 2,166,856 871,531 1,193,979 2,126,365 893,268 31.8 -8.0 2.7 21.7 11.8 2.9 MEASURES OF INFLATION AND PRICES - MONTHLY DATA Consumer Price Index (1982-1984=100) BLS U.S. - All Urban U.S. - Wage Earners % change versus year ago for: most most recent recent month 12-months SEP 2002 OCT 2002 NOV 2002 DEC 2002 181.0 177.0 181.3 177.3 181.3 177.4 180.9 177.0 JAN 2003 ... ... % change versus year ago for: most most recent recent month 12-months 2.4 2.4 1.6 1.4 Sources and abbreviations: ADES: Arizona Department of Economic Security ADHS: Arizona Department of Health Services ADOR: Arizona Department of Revenue ADOT: Arizona Department of Transportation ARMLS: Arizona Regional Multiple Listing Service ASBD: Arizona State Banking Department ASPB: Arizona State Parks Board BEA: Bureau of Economic Analysis, U.S. Department of Commerce PAGE FOURTEEN BLS: Bureau of Labor Statistics, U.S. Department of Labor Census C-40, Bureau of the Census, U.S. Department of Commerce EBR: Economic & Business Research Program, The University of Arizona F.W. Dodge, Division of McGraw Hill Information Systems Co. (proprietary data provided by special permission) NPS: National Park Service, U.S. Department of the Interior NSCCC: Nogales-Santa Cruz Chamber of Commerce PSIA: Phoenix Skyharbor International Airport SAAR: Seasonally adjusted at annual rates TAA: Tucson Airport Authority TAR: Tucson Association of Realtors USINS: U.S. Immigration & Naturalization Service, U.S. Department of Justice U.S. Bankruptcy Court, District of Arizona USCS: U.S. Customs Service, U.S. Department of the Treasury ARIZONA’S ECONOMY A R I Z O N A E C O N O M I C I N D I C A T O R S MEASURES OF INFLATION AND PRICES - QUARTERLY DATA Consumer Price index (1982-84=100) BLS Western Region (U.S.) U.S. - All Urban Consumers U.S. - Urban Wage Earners Price Indexes (1996=100) BEA Gross Domestic Product Personal Consumption Expenditures IV 2001 I 2002 II 2002 III 2002 182.1 177.3 173.5 183.2 177.9 173.9 184.8 179.8 175.8 185.2 180.6 176.6 185.7 181.2 177.2 2.0 2.2 2.1 2.0 1.6 1.4 109.8 109.8 110.1 110.1 110.5 110.9 110.8 111.4 111.5 112.0 1.9 1.2 1.4 CHANGE OF ADDRESS Attach old label or fill in old address in shaded box below. 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VEST 621-4075 STATE DATA CENTER...........................PIA MONTOYA 621-2523 DATA REFERENCE..................................VALORIE RICE 621-2109 EBR WEBMASTER .......................MAILE NADELHOFFER 621-4050 PAGE FIFTEEN BUSINESS FORUM BREAKFAST WITH THE ECONOMISTS: A MID-YEAR ECONOMIC UPDATE Join us for breakfast as three top economists update today’s economic reality—where we are and where we’re headed mid-way through 2003. Bank One’s Chief Economist, Diane Swonk, will address the current economic situation. Presenters include: Gerald Swanson, Ph.D. Associate Professor of Economics, the Eller College Marshall Vest, Director Economic and Business Research, the Eller College Diane Swonk, Chief Economist & Senior Vice President Bank One Corporation When: Where: Cost: Parking: Info: Friday, May 30, 2003, 7:15 a.m. ~ 9:00 a.m. McClelland Hall ~ Estes Atrium ~ 1130 East Helen Street $16.00 per person* Seating is limited, so make your reservations early! Complimentary parking provided in the Park Avenue garage (the corner of Park Avenue & Speedway Boulevard). Mary Hanson ~ 520.621.9954 ~ mhanson@eller.arizona.edu *Fee is not a charitable contribution. PAGE SIXTEEN ARIZONA'S ECONOMY