Regional Business Barometer Indicates Area Lagging in Retail Spending, but Permits Are Up

May 12, 2010 - Spokane, Wash.

The Inland Northwest continues to turn around from the recession, but that recovery will continue to be a process, local economists say. The Spokane Regional Business Barometer for the first quarter of 2010 was released today by Greater Spokane Incorporated.

Permits from both Spokane City and County are up this year, rising above 2008 and 2009 levels. 3,162 permits were issued in the first quarter of 2010, valued at over $149 million. That number compares with 2,431 permits during the same period of 2009 and 3,106 in 2008.

Spokane County home sales are also up this year, but experts note that the figures are somewhat skewed by government incentive programs for home buyers. Most of that growth was centered around the entry-level home market, which contributed to a falling average sale price.

“We’re going to see some gradual ramping up of real estate activity through next year, but I think 2012 will be the first really good year for real estate in the Inland Northwest,” said Randy Barcus of Avista.

Unemployment in Spokane County remains high at 10.8 percent, but appears to have peaked. Economic observer Phil Kuharski expects the healthcare industry to remain an important part of Spokane’s economy, but points to the decline in goods-producing employment, hoping that over time more manufacturing facilities will locate here.

On the other side, retail sales in the area continued to decline during the first quarter. Taxable retail sales in the county dropped 5.8 percent while total taxable sales fell 4.4 percent.

“I think that things will have worked themselves out by 2012 and we’ll be back into much more positive territory,” said Barcus. “Not back to our peaks, but it's going to feel much better.”

The Spokane Regional Business Barometer is published quarterly by Greater Spokane Incorporated with data provided by Eastern Washington University’s Institute for Public Policy and Economic Analysis. It is written by Kathy Maurer of Velocity Communications Group and sponsored by Washington Trust Bank. Contributors include Randy Barcus, chief economist for Avista Corporation; Grant Forsyth, economics professor at Eastern Washington University; Phil Kuharski, long-time area economic observer; and Steve Scranton, chief investment officer for Washington Trust Bank. The full report is available online.

Please contact Dawn Picken at 509-321-3614 for more information.