If my previous posts this week aren’t enough incentive to keep your spending in check this holiday season, consider this: According to new data, only 3 of 76 major metropolitan areas in the U.S. are showing concrete signs of economic recovery.
Today, the Brookings Institution released a report showing that only Dallas, Pittsburgh, and Knoxville, Tennessee, are currently in recovery from the recession. This evaluation of U.S. metropolitan areas was based on 1) unemployment levels, and 2) gross domestic product per capita. The Brookings Institution bills itself as a private, non-profit research group, implying this is a third-party, non-partial analysis we can trust.
As reported by Reuters:
The recession came late to many city budgets. Their primary revenue source – property taxes – took time to fall because of lags in real estate valuations. By the time they dropped, cities were also contending with falling sales and income taxes resulting from job losses.
Many of the splinters the downturn drove into their budgets remain deeply lodged, and cities of all sizes worry about federal spending cuts that are part of the ‘fiscal cliff.’
So what’s so special about Dallas, Pittsburgh, and Knoxville? The folks at the Brookings Institution attribute their economic recoveries to the strength of this communities’ local services (like health care), and business and financial services that cater to specific industries.
If you live in one of these three cities, what’s your experience? Are you seeing and feeling these signs of recovery? As for the vast majority of us who live in other metropolitan areas, what are you seeing of recovery in your neck of the woods? Do things seem to be getting better? Worse? Stagnant? Why or why not?