The Louisiana State University of Alexandria College of Business releases its July 2023 issue of the Central Louisiana Economic Dashboard.
Central Louisiana’s economy continues to be supported by a strong labor market and consumer spending, says Randall Dupont, Dean of the LSUA College of Business. Although the Alexandria-Pineville area unemployment rate rose from 2.9% in April to 3.6% in May as new graduates entered the workforce and students sought summer work, Dupont expects the rate to fall as graduates find jobs in the local market. The same is true for Natchitoches as the unemployment rate there rose from 3.8% in April to 4.6% in May.
Alexandria remained the tightest labor market in the state, although it is easing both locally and statewide. Since Spring, Baton Rouge has had the lowest unemployment rate in the state with the Alexandria metro area a close second. Overall, the unemployment rate in central Louisiana was 4.2% in May, compared to 4.4% for the state.
Through the first half of 2023, consumer spending in central Louisiana was ahead of last year in nearly all jurisdictions as measured by sales tax revenue. According to June sales tax collections, vehicle sales were up 31% in Rapides in May and were 12% higher than a year ago. Likewise, year-to-date auto sales in Natchitoches and Evangeline outperformed the first half of last year.
Online consumer spending in central Louisiana continues to outpace traditional sales in terms of percentage growth. Through June, online sales in central Louisiana were up 14% over the same period last year.
Higher interest rates are impacting construction activity and the housing market. Building permit valuations, which is a measure of future construction activity, were down -26% in central Louisiana through the first half of 2023, compared to the same period in 2022. Permits year-to-date are down in all reporting jurisdictions, except Rapides which has a 3% increase and the City of Natchitoches with an 11% increase. Home prices remain robust despite rising interest rates. The median price of a home is up from a year ago in all four metro areas of central Louisiana (Alexandria, Natchitoches, Leesville, and Opelousas), ranging from 2% in Alexandria to 23% in Leesville. As home prices increase so do active listings, which are up year-over-year with Alexandria and Natchitoches reporting increases of 31% and 58%, respectively.
New business applications in Louisiana through May were down -8% compared to the same period last year. In Rapides, new business applications through June were up 1% for the year at 229, compared to 226 in 2022.
The Central Louisiana 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 July 2023 CENLA Economic Dashboard, clickhere.
Written by Randall Dupont, Ph.D. | LSUA College fo Business
Photo credit - LSUA Strategic Communications