Economic Outlook for Mississippi

Mississippi’s economic turnaround could come later this year.
MPB’s Sandra Knispel reports from the annual Northeast Mississippi Economic Forecast Conference in Tupelo yesterday, which was hosted by the Community Development Foundation.

[nat sound laughter] These days laughter is rare when a room full of economists, business owners and bankers discuss the economy. But Peter Ricchiuti, finance professor and assistant dean at Tulane University’s business school, lightened the mood with humor. Historically, he says, yields on U.S. treasuries have served as a good economic indicator.

“We’re getting zero percent rate of return in a 3-month Treasury; about 2 ¼ in a 10-year Treasury note. That positive number is indicating that there’s a turnaround ahead. And it’s usually a 6-month lead time," Ricchiuti explained.

But that’s still not good news for the job market, cautions Mississippi’s state economist, Dr. Phil Pepper.

“I think the unemployment is going to get worse. You’ll see gross domestic product continue to decrease quarter over quarter for another couple of quarters,” said Pepper.

Nevertheless, according to Ricchiuti northeast Mississippi is well positioned with its Toyota plant, albeit delayed.

“The Prius as a vehicle is the best thing out there. I mean in terms of fuel efficiency it’s the one that works. And the people who drive a Prius are crazy about them. I couldn’t think of a better proposed plant," Ricchiuti gushed.

Toyota meanwhile is still waiting for an uptick in sales.

Sandra Knispel, MPB News.