MS Economy Expected to Rebound slower than Some Surrounding States

Published by Lawayne Childrey on 08 Jun 2009 5:37pm
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"We’ll be bottoming out sometime this year and by the end of the year things will be turning up.”-Dr. Marianne Hill, State Economist for IHL
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The national forecasting group, Moody's Economy.com predicts Mississippi will be among 31 states including Florida and Louisiana that won't exit the recession until late next year. But as MPB's Lawayne Childrey reports, some local economist are much more optimistic.

State Economist, Dr. Marianne Hill believes Mississippi's economy will grow at a much faster pace than predicted by Moody's.

“Consumers are already into positive numbers, they’re’ spending more gradually. They’re also paying down their debt. Building permits are looking a little more positive. We see some signs that the upturn is gonna come in housing this year. We’ll be bottoming out sometime this year and by the end of the year things will be turning up.”

Mississippi's economy has taken severe hits in big ticket manufacturing like furniture, appliances and the automotive industry. But Dr. Okechukwu Anyamale, Associate Professor of Economics at Jackson State University, believes the federal governments stimulus plan will help turn things around.

“We think that by the end of this summer and towards the end of the fourth quarter, that those things will start yielding fruit.”

Signs of an improved economy would be positive indicators in banking, housing and a declining unemployment rate. Wayne Gasson, public information officer with the Mississippi Department of Employment Securities says there are also other signs to watch for.

“Another statistic that we do is the monthly payroll survey and we would expect to see employment increase in that also. An additional sign that could indicate that the economy is doing better is fewer unemployment claims.”

Mississippi's current unemployment rate is on par with the nation at 8.6%. Gasson says that's unusual because Mississippi is traditionally above the national average. For MPB News, I'm Lawayne Childrey.