Southwest Florida Regional Economic Indicators - … Florida Regional Economic Indicators September...

Southwest Florida Regional Economic

Indicators

September 2017 VOLUME XI NUMBER 9

Regional Economic Research Institute

Lutgert College Of Business 10501 FGCU Blvd. South Fort Myers, FL 33965

Phone 239-590-7090 www.fgcu.edu/cob/reri

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Table of Contents Introduction: Regional and National Background ........................................................................................................ 4

Airport Passenger Activity ............................................................................................................................................. 5

Chart 1: SW Florida International Passenger Activity............................................................................................... 5

Chart 2: Punta Gorda Airport Passenger Activity ..................................................................................................... 6

Chart 3: Sarasota Airport Passenger Activity ............................................................................................................ 6

Tourist Tax Revenues ..................................................................................................................................................... 7

Chart 4: Tourist Tax Revenues for the Coastal Counties .......................................................................................... 7

Chart 5: Coastal County Tourist Tax Revenues ......................................................................................................... 8

Taxable Sales ................................................................................................................................................................. 8

Chart 6: Taxable Sales for 5 County Region .............................................................................................................. 9

Chart 7: Taxable Sales for Coastal Counties ............................................................................................................. 9

Chart 8: Taxable Sales for Inland Counties ............................................................................................................. 10

Workforce – Labor Force, Employment and Unemployment...................................................................................... 10

Chart 9: Lee County Labor Force and Unemployment ........................................................................................... 11

Chart 10: Collier County Labor Force and Unemployment .................................................................................... 11

Chart 11: Charlotte County Labor Force and Unemployment................................................................................ 12

Chart 12: Hendry County Labor Force and Unemployment ................................................................................... 12

Chart 13: Glades County Labor Force and Unemployment .................................................................................... 13

Single-Family Building Permits .................................................................................................................................... 13

Chart 14: Single-Family Building Permits for Lee County ........................................................................................ 14

Chart 15: Single-Family Building Permits for Collier County .................................................................................. 14

Chart 16: Single-Family Building Permits for Charlotte County ............................................................................. 15

Existing Single–Family Home Sales and Median Prices ............................................................................................... 15

Chart 17: Existing Single-Family Home Sales for Lee County ................................................................................. 16

Chart 18: Existing Single-Family Home Sales for Collier County ............................................................................. 16

Chart 19: Existing Single-Family Home Sales for Charlotte County ......................................................................... 17

Consumer Sentiment Index ......................................................................................................................................... 17

Chart 20: U.S. Index of Consumer Sentiment ......................................................................................................... 18

Chart 21: Florida Consumer Sentiment Index ......................................................................................................... 18

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Consumer Price Index .................................................................................................................................................. 19

Chart 22: CPI Annual Percentage Change............................................................................................................... 19

Chart 23: Miami-Fort Lauderdale CPI Component Percentage Change ................................................................. 20

Appendix: Trends in Regional Population, U.S. GDP, U.S. Unemployment, and Industry Diversification ................... 20

Chart A1: Coastal Counties Population, 1990 to 2040 ........................................................................................... 21

Chart A2: Inland Counties Population, 1990 to 2040 ............................................................................................. 21

Chart A3: Historic and Projected GDP Growth, 2007 to Long Run ......................................................................... 22

Chart A4: Historic and Projected Unemployment, 2007 to Long Run .................................................................... 23

Chart A5: Industry Diversification Index, 2005 to 2016 .......................................................................................... 24

Regional Economic Indicators is published monthly by the staff and students of the Regional Economic Research Institute at Florida Gulf Coast University. Dr. Chris Westley, Director, Regional Economic Research Institute

Phone: 239-590-7090 Email: [email protected] Mr. Steven Scheff, Business Analyst, Regional Economic Research Institute

Phone: 239-590-7315 Email: [email protected] Mr. Jim Breitbach, Technical Support, Regional Economic Research Institute

Email: [email protected]

Copyright © 2017 FGCU - All rights reserved.

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Introduction: Regional and National Background For the third consecutive month, Southwest Florida exhibited healthy growth in several areas of the regional economy. Positive trends included a 7-percent increase in tourist tax revenues from June 2016 to June 2017, a 6-percent increase in taxable sales revenues from May 2016 to May 2017, and a 14-percent increase in single-family building permits from July 2016 to July 2017. Other year-to-year positive changes included a 7-percent increase in airport passenger activity. Seasonally-adjusted regional unemployment decreased to 4.1 percent in July 2017 from 4.3 percent in June 2017. Since July 2016, the unemployment rate for the region has dropped by 0.6 points, and compares favorably to the 4.3 percent figure for the national economy. Other highlights from this report include:

Single family home sales for July 2017 were 14 percent below June 2017, but 2 percent above July 2016.”

Single-family home median prices increased for each of the coastal counties between July 2016 and July 2017. Charlotte County had the largest year-to-year increase (20 percent), while Lee and Collier County had increases of 2 percent and 9 percent, respectively.

The consumer sentiment index for the state of Florida declined by 1.5 points to 96.5 in August 2017. Despite the decline, the index remains 8.4 points higher than the August 2016 figure.

The RERI staff extends its sincere thanks and appreciation to the dedicated individuals and organizations who contribute to this report. These include FGCU student workers affiliated with the RERI, the Southwest Florida Regional Planning Council, the Economic Development Organizations of Charlotte, Collier, and Lee counties, the Convention and Visitors Bureaus of Charlotte, Collier and Lee counties, the regional airport authorities, the Realtors® of Collier, Lee, and Charlotte counties, the University of Florida Survey Research Center, and the county and city permit offices.

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Airport Passenger Activity Airport passenger activity is the sum of arrivals and departures for Southwest Florida International (RSW), Sarasota Bradenton International (SRQ), and Punta Gorda (PGD) airports. Peak seasonal activity occurs in February, March, and April, with significantly lower activity in the summer months. Charts 1, 2, and 3 illustrate this seasonality as well as the changes from year to year. Passenger activity for the three airports totaled 717,436 in June 2017. Although seasonally below the prior month (by 13 percent), this represented a 7-percent increase over June 2016. RSW served 528,383 passengers in June 2017, up 7 percent from June 2016 (see Chart 1). Passenger activity in Punta Gorda rose to 108,502 in June 2017, a 10-percent increase over June 2016 (Chart 2). Sarasota Bradenton recorded passenger activity of 80,551, up 4 percent over June 2016 (Chart 3). For the first six months of 2017, total passenger activity amounted to 6,642,636, an increase of 206,500 (3 percent) over the same period last year.

Chart 1: SW Florida International Passenger Activity

Source: Local Airport Authorities

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Chart 2: Punta Gorda Airport Passenger Activity


Chart 3: Sarasota Airport Passenger Activity


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Tourist Tax Revenues Seasonally-adjusted tourist tax revenues, shown in Charts 4 and 5, are based on month of occupancy. Total revenues for the three coastal counties rose to $5,711,395 in June 2017, an increase of $348,655 (7 percent) over June 2016, and 4 percent higher than the prior month of May 2017. Collier County’s seasonally-adjusted tourist tax revenues were $1,989,727 in June 2017, a 15-percent increase from June 2016. In Lee County, June 2017 revenues rose to $3,364,940, an increase of 3 percent from June 2016. Charlotte County’s seasonally-adjusted revenues were $366,873 in June 2017, up 14 percent over June 2016.

Chart 4: Tourist Tax Revenues for the Coastal Counties

Source: Local County Tourism, Tax, and Economic Development Reports

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Chart 5: Coastal County Tourist Tax Revenues

Source: Local County Tourism, Tax, and Economic Development Reports and seasonal adjustment by RERI

Taxable Sales Taxable sales data track consumer spending based on the latest month of merchants’ collections. The Florida Department of Revenue reports this data one month later than its usual reporting month, and thus are current through May 2017. Both seasonally-adjusted and unadjusted taxable sales for the region are shown in Chart 6. Total seasonally-adjusted taxable sales in May 2017 were $2.208 billion, up 6 percent over May 2016, and 3-percent higher than April 2017. A slowing of the growth rate since August 2016 can be seen in this chart. Charts 7 and 8 show seasonally-adjusted taxable sales for the coastal and inland counties, respectively. Lee County’s taxable sales increased 4 percent from $1.129 billion in May 2016 to $1.179 billion in May 2017. Collier County’s taxable sales increased from $695.0 million in May 2016 to $746.1 million in May 2017, an improvement of 7 percent. Charlotte County taxable sales rose from $230.5 million in May 2016 to $245.6 million in May 2017, an increase of 7 percent. Taxable sales in Hendry County grew to $32.3 million in May 2017, up 4 percent from May 2016. Glades County taxable sales were $4.7 million in May 2017, an increase of 20 percent from May 2016. All cited data are seasonally-adjusted.

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Chart 6: Taxable Sales for 5 County Region

Source: Florida Department of Revenue, Office of Tax Research

Chart 7: Taxable Sales for Coastal Counties


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Chart 8: Taxable Sales for Inland Counties


Workforce – Labor Force, Employment and Unemployment Charts 9-13 show total persons employed and unemployed, and the unemployment rate, all seasonally adjusted by the RERI, for each county from January 2005 through July 2017. The unemployment rate for the five-county region dipped to 4.1 percent in July 2017, down from 4.3 percent in June 2017 and 4.7 percent in July 2016. The July 2017 number of employed increased by 4,740 from the prior month, while the number of unemployed decreased by 1,237. Since July 2016, the number of employed workers has increased by 12,303 (2 percent), while the number of unemployed workers has declined by 3,688 (13 percent), thus decreasing the region’s seasonally-adjusted unemployment rate over that period.

Lee County’s unemployment rate dropped to 3.8 percent in July 2017, a decrease of 0.3 points from June 2017, as depicted in Chart 9. Collier County’s unemployment rate decreased to 3.9 percent in July 2017, down from 4.2 percent in June 2017 (Chart 10). The unemployment rate in Charlotte County also declined, from 4.7 percent in June 2017 to 4.4 percent in July 2017 (Chart 11). Hendry County’s July 2017 unemployment rate decreased to 8.3 percent from 8.6 percent in June 2017 (Chart 12). The unemployment rate for Glades County registered at 5.7 percent in July 2017, remaining unchanged from the June 2017 figure (Chart 13). Florida’s seasonally-adjusted unemployment rate was 4.1 percent in July 2017, the same as the previous month and 0.8 points below the July 2016 figure. Nationally, the seasonally adjusted national unemployment rate amounted to 4.3 percent in July 2017, compared to 4.4 percent in June 2017 and 4.9 percent in July 2016.

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Chart 9: Lee County Labor Force and Unemployment

Source: Florida Department of Economic Opportunity and seasonal adjustment by RERI

Chart 10: Collier County Labor Force and Unemployment


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Chart 11: Charlotte County Labor Force and Unemployment


Chart 12: Hendry County Labor Force and Unemployment


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Chart 13: Glades County Labor Force and Unemployment


Single-Family Building Permits A total of 695 single-family permits were issued in July 2017 by the three coastal counties, 82 more (13 percent) than July 2016, albeit 199 fewer than June 2017. Lee County issued 360 permits in July 2017, an increase of 73 (or 25 percent) over July 2016 (Chart 14). In Collier County, 224 permits were issued in July 2017 compared to 228 in July 2016 (Chart 15). Charlotte County issued 111 permits in July 2017, an increase of 13 over July 2016, as depicted in Chart 16. Hendry County issued 6 permits in July 2017, bringing the year-to-date total to 47. This is an improvement over the 31 permits issued last year through July 2016.

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Chart 14: Single-Family Building Permits for Lee County

Source: Local Building and Zoning Departments, including Fort Myers, Cape Coral, and Unincorporated Lee County, Bonita Springs, Estero, and Fort Myers Beach permits

Chart 15: Single-Family Building Permits for Collier County

Source: Local Building and Zoning Departments, includes unincorporated Collier County permits only

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Chart 16: Single-Family Building Permits for Charlotte County

Source: Local Building and Zoning Departments, includes unincorporated Charlotte County permits only

Existing Single–Family Home Sales and Median Prices Charts 17-19 summarize existing single-family home sales by a Realtor® for Lee, Collier, and Charlotte Counties. The solid lines represent median prices plotted against the scale on the right side, and the bars represent the number of homes sold with the scale on the left side. The broken lines show the trends in numbers of homes sold and median prices. Total Realtor® sales of single-family homes in the three counties were 1,833 in July 2017, a 2-percent increase over July 2016, but 14-percent lower than June 2017. Median prices rose in all three coastal counties compared to July 2016.

Lee County’s July 2017 sales of 1,068 units were less than 1-percent higher than July 2016, along with a median price increase of $5,675 to $235,675. Collier County single-family home sales increased to 354 units in July 2017, a 10-percent improvement from July 2016. Over this same period, Collier’s median price rose $34,000 to $409,000. Charlotte County recorded 411 single-family homes sold in July 2017, a one unit increase over July 2016. Charlotte’s median price increased by $35,150 to $213,750 over the same time span.

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Chart 17: Existing Single-Family Home Sales for Lee County

Source: Realtor® Association of Greater Fort Myers and the Beach, Inc.

Chart 18: Existing Single-Family Home Sales for Collier County

* Does not include Marco Island

Source: Naples Area Board of Realtors® (NABOR) www.naplesarea.com

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Chart 19: Existing Single-Family Home Sales for Charlotte County

Source: Florida Realtors® Punta Gorda, Florida MSA; http://media.living.net/statistics/statisticsfull.html

Consumer Sentiment Index Charts 20 and 21 shows monthly data and linear trend lines over the last six years for both the Florida Consumer Sentiment Index (“CSI”) reported by the University of Florida Bureau of Economic and Business Research (BEBR) and for the United States Index of Consumer Sentiment (“ICS”) reported by Thomson Reuters/University of Michigan. The national ICS increased by 3.4 points to 96.8 in August 2017, seven points higher than the August 2016 figure. The September 1, 2017 issue of Survey of Consumers noted that “The renewed strength in 2017 was mainly due to consumers' favorable assessments of their own financial situations. Lows in unemployment, inflation, and interest rates, as well as renewed gains in the value of their homes and stock portfolios, pushed personal financial evaluations to near all-time peaks.” The Florida Consumer Sentiment Index for August 2017 was 96.5, a decline of 1.2 points from July 2017, but 8.4 points above the August 2016 figure. This data is depicted in Chart 21 below. “In the last two months, July and August, Floridians’ perceptions of present economic conditions shifted slightly downward; nonetheless, they remained 2.6 points higher than the average over the last 12 months,” said Hector H. Sandoval, director of the Economic Analysis Program at UF’s Bureau of Economic and Business Research, as reported in the Florida Consumer Sentiment Index of August 29, 2017. Sandoval noted that despite the overall decline in the index, people 60 and older consistently reported very high consumer sentiment. “In particular, they hold positive views regarding their personal financial situation compared with a year ago and are very optimistic about their personal finances in the short-run,” Sandoval said.

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http://media.living.net/statistics/statisticsfull.html

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Chart 20: U.S. Index of Consumer Sentiment

Source: Thomson Reuters/University of Michigan

Chart 21: Florida Consumer Sentiment Index

Source: Bureau of Economic and Business Research, University of Florida

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Consumer Price Index As reported last month, Chart 22 shows year-to-year changes in consumer price indices (CPI) through June 2017. The rate of consumer price inflation is increasing somewhat, with all three depicted areas up by 1.5 percent or more over the prior June. The national index was up 1.6 percent from June 2016 to June 2017; in the previous 12 months, it was up 1.0 percent. The U.S. Southern Region CPI increased by 1.5 percent compared to 0.8 percent between June 2015 and June 2016. The index for the Miami-Ft. Lauderdale area was 2.0 percent higher than June 2016, compared to 1.6 percent in the prior year.

Chart 22: CPI Annual Percentage Change

Source: U.S. Bureau of Labor Statisics Components of the Miami-Fort Lauderdale Consumer Price Index for the 12 months ending June 2017 are shown in Chart 23. Once again, the largest increase was seen in the costs of Medical Care (up 7.7 percent), while the increase in costs of Housing and Recreation were above average for the area during this time period. Transportation and Education & Communication prices showed noticeable declines.

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Chart 23: Miami-Fort Lauderdale CPI Component Percentage Change

Source: U.S. Bureau of Labor Statistics

Appendix: Trends in Regional Population, U.S. GDP, U.S. Unemployment, and Industry Diversification The data presented in this appendix are not released on a monthly basis. The first two charts, Charts A1 and A2, show historic population growth through 2015, as well as projections updated annually by the state of Florida’s Office of Economic and Demographic Research, working in conjunction with the University of Florida’s Bureau of Economic and Business Research. The second two charts, Charts A3 and A4, depict historic measures of U.S. GDP growth rates and unemployment as well as projections by the Federal Reserve’s Federal Open Market Committee, while Chart A5 depicts the FGCU Industry Diversification Index for Southwest Florida and the state. Charts A3, A4, and A5 are updated quarterly. Regional Population From 1990 to 2015, regional population growth averaged 2.7 percent per year. The compound average annual rate of growth for 1990 to 2015 was 2.8 percent in Lee County, 3.3 percent in Collier County, 1.7 percent in Charlotte County, 2.1 percent in Glades County, and 1.6 percent in Hendry County. The right-hand sections of Charts A1 and A2 show projected population increases from 2016 to 2040. All projected rates of increase are lower than the historic growth rates of 1990 to 2015. Growth for the five-county region averages 1.6 percent per year, resulting in a population increase of 47 percent for the five-county region from 2015 to 2040. This would bring the total to 1,803,526, amounting to nearly 576,000 additional residents. Lee County’s population is projected to grow an average of 1.9 percent per year, Collier County

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Miami - Fort Lauderdale CPI Components 12 month change ending June 2017

* Other goods and services:Tobacco and smoking products, personal care products and services, and miscellaneous personal

goods.

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at 1.4 percent, and Charlotte County at 0.9 percent per year. Hendry County’s population is projected to grow at an average of 0.3 percent per year and Glades County at 0.5 percent per year.

Chart A1: Coastal Counties Population, 1990 to 2040

Source: Office of Economic and Demographic Research

Chart A2: Inland Counties Population, 1990 to 2040

Source: Office of Economic and Demographic Research

1990111

Charlotte2015167

1990152

Collier

2015344

1990335

Lee

2015666

2040210

2040483

20401,055

0

200

400

600

800

1000

1200

1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040

Po

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Historic and Projected Population Charlotte, Collier, and Lee Counties

Historic Projected

19907.6

Glades

201512.9

199025.8

Hendry

201538.1

204041.6

204014.6

0

5

10

15

20

25

30

35

40

45

1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040

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Historic and Projected Population Glades and Hendry Counties

Historic Projected

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National GDP and Unemployment Charts A3 and A4 depict both historical trends and the Federal Open Market Committee’s projections for national Gross Domestic Product (“GDP”) and Unemployment. The FOMC’s projections are released quarterly and reflect the assessments of the Federal Reserve Board of Governors and of Federal Reserve District Bank presidents, with the most recent figures shown in the following charts. The dotted lines depict the highest and lowest projections—or the range of all projections—while the darker blue area within the dotted lines depict the central tendency forecast within those projections. Chart A3 shows the recovery in GDP growth following the most recent recession, and current projections close to the normal long-run trend (“LR”). Real GDP growth rates are based on the change from the fourth quarter of one year to the fourth quarter of the next year. The June 2017 forecast projects a slight increase in GDP growth for the remainder of 2017 compared to the 1.6 percent recorded for 2016. The overall high and low projections (shown as ranges below) for the rest of 2017, 2018, 2019, and the long run were virtually unchanged from the projections made in the March 2017 forecast, with the central tendency forecast hovering around the 2 percent mark through 2018 and then falling slightly thereafter. None of the projections achieves the 3 percent GDP measure that economists generally associate with an economy operating with a full employment of resources.

Chart A3: Historic and Projected GDP Growth, 2007 to Long Run

Source: Historical data obtained from Bureau of Economic Analysis. Projected data obtained from Federal Reserve Open Market Committee Meeting Statement, June 14, 2017

Chart A4 depicts the recovery in unemployment following the 2008 recession to levels more closely associated with natural rates of unemployment. Compared to these national numbers, unemployment

1.8

-0.3

-2.8

2.5

1.6

2.2

1.7

2.42.6

1.6

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-3.0

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0.0

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U.S. Growth of Real GDP

Range

Central Tendency

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rates in Florida and Southwest Florida tend to be more volatile, falling lower when national unemployment is falling and rising higher when national unemployment is rising. The June forecast projects continued declines in unemployment through 2019, with an average central tendency forecast close to 4.0 percent for the rest of 2017, 2018, and 2019, and then rising in the long run. The lower range forecast fell below 4 percent through 2019. If the U.S. economy avoids falling into a recession past the summer of 2019—an outcome consistent with the Fed’s projections—then the current expansion will be the longest one observed in 150 years.

Chart A4: Historic and Projected Unemployment, 2007 to Long Run

Source: Historical data obtained from Bureau of Economic Analysis. Projected data obtained from Federal Reserve Open Market Committee Meeting Statement, June 14, 2017.

The next quarterly release of projections for GDP and Unemployment will be released following the FOMC meeting scheduled in September 2017. These projections will be updated in the October 2017 edition of Regional Economic Indicators. Industry Diversification Index The FGCU Industry Diversification Index (IDI) measures the degree to which a region’s workforce is concentrated in few industries or dispersed into many. The IDI is computed quarterly by the Regional Economic Research Institute’s Industry Diversification Project, which tracks industry diversification by Metropolitan Statistical Area, workforce region, and state. (For more details, please go to lutgert.fgcu.edu/IDI.) The IDI can be between 0 and 10, with a higher index denoting a more diverse workforce and a lower one denoting a less diverse workforce. Industry diversification is an important factor explaining our state and region’s tendency to overheat during expansions in the business cycle and overcorrect during contractions in the business cycle.

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9.3 9.6

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U.S. Unemployment Rate

Range

Central Tendency

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Chart A5 shows the industry diversification index for the Southwest Florida workforce region and the state of Florida. Southwest Florida shows an increase in industry diversification from the fourth quarter of 2006 to the 3rd quarter of 2008. After 2008, the Southwest Florida workforce region exhibits a seasonal trend, mainly due to the stronger influence of tourism and seasonal residents that visit Southwest Florida during the winter season, increasing the demand for retail trade and accommodation and food service jobs. During the fourth quarter of 2016, the IDI for Southwest Florida was measured at 8.46, and ranked as the 9th most industrially diverse workforce region in the state of Florida. Meanwhile, the state of Florida had an IDI measured at 8.53, ranking as the 24th highest state in the nation in industry diversification.

Chart A5: Industry Diversification Index, 2005 to 2016

Source: lutgert.fgcu.edu/IDP

Southwest Florida Regional Economic Indicators - … Florida Regional Economic Indicators September...

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