September 2008

The local economy bucked a pronounced downward trend by rebounding smartly in September. The Index of Economic Activity in Tompkins County jumped 2.51 percent to a level of 152.87 from a revised mark of 149.13 in August. Impressive gains in employment and home sales led the way. Compared to September 2007, however, economic activity was down 0.08 percent.

The local economy added 1,700 jobs in September, almost all of them in education and health services, our bread and butter industries. September means back to school and that means back to work for many Tompkins County educators. But the job gains reported here are after seasonal adjustment. The unemployment rate remained stubbornly high at 4.5 percent, compared to 3.3 percent in September 2007. The national rate was 6.0 percent, while New York State reported 5.6 percent unemployment.

Retail sales were the only dark cloud in September, falling 1.99 percent. Compared to September 2007, the volume of retail sales was down 3.21 percent.

The number of passengers arriving and departing from Ithaca Tompkins Regional Airport ascended 11.40 percent to 16,422 from 14,741 in August. Compared to September 2007 air traffic was down 3.75 percent.

Residential building permits issued in Tompkins County vaulted 59.77 percent in September. Permits have a tendency to swing widely from month to month. Building permits were slightly higher through the first nine months of 2008 than for the comparable months of 2007.

Residential home sales in Tompkins County climbed 10.55 percent in September when 66 homes were sold. In September 2007, 63 homes were sold. The average sale price was $190,000 compared with $164,300 a year ago. The median sale price was $170,000 compared to $152,500 a year ago.

Help wanted advertising improved by 7.40 percent in September. An increase in advertising for workers can signal future gains in employment.

The numbers for August suggested that the regional economy was on the skids. All five sectors registered declines. September was much better with four of the five sectors showing gains. This was our first good month since January 2008. Employment is the key. If the economy can create and sustain jobs, things will be much better here than the nation in general.

Maintained by Elia Kacapyr (kacapyr@ithaca.edu)
Last updated 10/30/08