By Tim Krohn
Free Press Staff Writer
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There continues to be a few bright spots in the region’s economy but also ongoing concerns. Unemployment rates vary widely, house and vehicle sales remain fairly strong, and there was somewhat of a construction surge in Mankato.
Minnesota’s unemployment rate was unchanged in February at 7.3 percent. New figures for counties will be released later. In January, unemployment rates ranged from 6.5 percent in Blue Earth and Nicollet counties, to 12.4 percent in Le Sueur County. Faribault County was at 9.5 percent, Sibley County at 9.2 percent, while Waseca and Watonwan counties had rates of 9.1 percent.
In Mankato, auto dealers sold 539 vehicles in January, up from 474 a year earlier and up from the 506 vehicles sold the month before.
The local sales tax collected by Mankato was up $10,000 from a year earlier with $441,000 collected in January.
Local construction permits for residential construction and renovations in February were ahead of the same time a year earlier.
Mankato issued $1.9 million in residential permits in February, far ahead of the $403,400 issued the same month in 2009. North Mankato issued $590,600 in permits, compared to zero a year earlier.
Much of the activity in Mankato is attributed to a large student housing project near MSU.
Commercial permits in the two cities were not as positive. February saw $1.5 million in permits in Mankato compared to $1.7 million a year earlier. North Mankato issued $13,000 in permits, down from $137,900 a year earlier.
Existing home sales in the region were just slightly above a year ago with 78 homes sold in February, up two from February 2009.
While Minnesota’s unemployment rate was steady, employers still eliminated a net 3,400 jobs.
The new Department of Employment and Economic Development figures contrasted with a strong showing in January, when the state added 17,200 jobs.
The state is waiting for several consecutive months of job gains topping 5,000 before it declares a sustained economic recovery.
Minnesota’s unemployment rate is considerably better than the national rate of 9.7 percent.
February’s biggest job losses were in the construction, hospitality, government and financial industries. Retailers and manufacturers added jobs.
Meanwhile, a new survey of rural bankers in 11 Midwest and Plains states, including Minnesota, shows continued weakness in the agriculture industry, but also signs of improvement.
The overall index for the Rural Mainstreet economic report rose to 47.4 in March from February’s 36.6. That’s more than double last March’s reading of 18.7.
The index ranges between 0 and 100. A score below 50 suggests the economy will contract in the next few months; above 50 indicates the economy will expand.
The index has remained below 50 for 25 consecutive months.
