UNCW Economist Predicts Continued Robust Growth for Local Economy
6/14/2006 10:48:39 AM
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Following growth of almost eight percent during 2005, the local economy of Brunswick, New Hanover and Pender counties is forecasted to expand by more than nine percent over the next 12 months, predicted Dr. William W. Hall Jr., senior economist with the Center for Business and Economics Services in the UNCW Cameron School of Business.
In a press conference held on the UNCW campus June 14, Hall attributed the robust economic growth to several factors, most noticeably continued strong growth in the retail and professional services sectors. He has tracked the economy of Southeastern North Carolina for more than 20 years as part of his work with the center.
Reviewing the 2005 data, Hall noted that local economic growth during the third quarter of the year was very strong as was growth toward the end of the year, with December setting a record for retail sales tax collections. Currently, the retail and services sectors account for more than three-fourths of total area employment.
Hall stated that tourism has rebounded dramatically from the slowdown following the September 2001 terrorist attacks. Collections from the first three-percent room occupancy tax levied in New Hanover County rose more than 10 percent during 2005 alone. First quarter 2006 collections were 11 percent above first quarter 2005 collections.
Construction remains a strong component of the local economy. Although the growth rates in the number of permits issued for new construction and the value of that construction in New Hanover County fell during 2005, more than 2,600 permits were issued with a value in excess of $755 million.
Hall expects some strengthening in retail sales and service sector growth over the next 12 months. Tourism should also show healthy growth over the current season. Construction should remain strong, although the very high growth rates that the sector experienced during the first part of the decade will probably not be matched in the foreseeable future. His projections assume that no major tropical event or act of terrorism will occur next year.
For additional comments, contact Dr. Hall at 910.962.3419, fax 910.962.3579, or e-mail hall@uncw.edu.
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