“Consumer spending in January exceeded year ago levels in central Louisiana, indicating a good start for the year,” said Dr. Randall Dupont, Dean of the LSUA College of Business and creator of the monthly dashboard.
All central Louisiana parishes reported an increase in sales tax revenue in January over last year, with increases ranging from 6% to 28%. Sales tax revenue is used as a proxy for consumer spending.
“Vaccinations are proceeding as expected,” said Dupont, “and increased vaccinations in CENLA is good for business. It’s allowing business operations to return to normal, while still complying with COVID-19 guidelines.”
In LDH Region 6, which covers central Louisiana, 9% of the population has been vaccinated, with Rapides and Natchitoches having the highest percentage of completed vaccinations at 11%.
Initial unemployment claims in CENLA averaged 414 in February, down 58% from January. Continued claims were down 22%. The state unemployment rate in January fell 0.3% from 7.9% to 7.6%, while unemployment in the Alexandria metro area rose from 5.0% to 5.2%. Nevertheless, Alexandria had the lowest unemployment rate among the state’s major metro areas for the ninth consecutive month.
The housing market continues to show relative strength in the Alexandria MSA. Compared to February 2020, active listings are down 60% and pending listings are up 316%. The median listing price of a home is up 12% over this time last year, while the average price is up 25%. The median listing price peaked in October at $231,950 and is currently 11% off the peak. “Housing indicators continue to point to a strong real estate market in the months to come,” said Dupont.
One area of concern for the local economy is the decrease in occupational licenses in Rapides. Occupational license revenue in January and February was down 22% parish wide, indicating a decline in the number of businesses operating. However, unincorporated areas of the parish fared better, being down only 13%. “Occupational licenses are a measure of business growth,” said Dupont. “On a positive note, occupational licenses in Ball are up 31% compared to last year.”
A new data point included in the CENLA Economic Dashboard this year is the number of new businesses established in Rapides. In February, 32 new businesses were opened, the same as last February. 2020 saw 402 new businesses established in Rapides, a decrease of 6% from 2019.
In a recent study of business closures in Rapides, more than half of new businesses do not make it five years. Of the 294 businesses that closed between 2018 and 2020, 31% closed in less than two years, 40% in less than three years, and 52% in less than five years. “New businesses reach a critical juncture at the 3- to 5-year mark,” said Dupont. “Our goal with LSUA’s Launchpad is to help startups build a sustainable business model that will carry them well beyond this juncture.”
The City of Alexandria and the LSUA College of Business have teamed up to offer the Launchpad program, LSUA’s business startup initiative. The business training program, which is now in its third week, runs through May 5. The program is designed to help startups develop an effective business plan and create a sustainable business model. The program is being taught by LSUA business faculty and uses Kauffman Foundation’s FastTrac® content. Topics covered include market research, business model design, pricing strategy, legal strategy, distribution and sales, financial management and building the organization.
The CENLA Economic Dashboard is a service of the LSUA College of Business to help business and community leaders monitor the economic pulse of central Louisiana.
To view the March 2021 CENLA Economic Dashboard, click here.