![Page 1: National and Regional Economic Outlooksfc.virginia.gov/pdf/retreat/2019 Harrisonburg/112119_No1...National and Regional Economic Outlook VA Senate Finance Committee November 21, 2019](https://reader030.vdocuments.us/reader030/viewer/2022041100/5ed6a8ba39f16f294d573936/html5/thumbnails/1.jpg)
Sonya Ravindranath Waddell
Vice President and Economist, Regional and Community Analysis
Research Department
National and Regional Economic Outlook
VA Senate Finance Committee
November 21, 2019
The views and opinions expressed herein are those of the
author. They do not represent an official position of the Federal
Reserve Bank of Richmond or the Federal Reserve System.
![Page 2: National and Regional Economic Outlooksfc.virginia.gov/pdf/retreat/2019 Harrisonburg/112119_No1...National and Regional Economic Outlook VA Senate Finance Committee November 21, 2019](https://reader030.vdocuments.us/reader030/viewer/2022041100/5ed6a8ba39f16f294d573936/html5/thumbnails/2.jpg)
What is the Story?
On the one hand…
• Consumer spending growth is solid
• Employment is growing and labor markets are tight
• The Virginia economy continues to grow
On the other hand…
• Residential and business investment has been soft
• Slowdown in manufacturing, particularly among firms with a global
reach
– Trade policy remains uncertain
– Global economic growth is slowing
• Sentiment indices are soft
• Growth in Virginia continues to trail that of the nation and economic
activity is not uniform across the Commonwealth
2
![Page 3: National and Regional Economic Outlooksfc.virginia.gov/pdf/retreat/2019 Harrisonburg/112119_No1...National and Regional Economic Outlook VA Senate Finance Committee November 21, 2019](https://reader030.vdocuments.us/reader030/viewer/2022041100/5ed6a8ba39f16f294d573936/html5/thumbnails/3.jpg)
National Economic Trends
3
![Page 4: National and Regional Economic Outlooksfc.virginia.gov/pdf/retreat/2019 Harrisonburg/112119_No1...National and Regional Economic Outlook VA Senate Finance Committee November 21, 2019](https://reader030.vdocuments.us/reader030/viewer/2022041100/5ed6a8ba39f16f294d573936/html5/thumbnails/4.jpg)
U.S. Real Gross Domestic Product
Source: Bureau of Economic Analysis, Federal Reserve Board /Haver Analytics
4
-6
-4
-2
0
2
4
6
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
% Change, SAAR
Q3: 2019
US: 1.9%
![Page 5: National and Regional Economic Outlooksfc.virginia.gov/pdf/retreat/2019 Harrisonburg/112119_No1...National and Regional Economic Outlook VA Senate Finance Committee November 21, 2019](https://reader030.vdocuments.us/reader030/viewer/2022041100/5ed6a8ba39f16f294d573936/html5/thumbnails/5.jpg)
Personal Consumption Expenditures
5
-5
-4
-3
-2
-1
0
1
2
3
4
5
6
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
% Change, SAAR
Q3: 20192.9%
![Page 6: National and Regional Economic Outlooksfc.virginia.gov/pdf/retreat/2019 Harrisonburg/112119_No1...National and Regional Economic Outlook VA Senate Finance Committee November 21, 2019](https://reader030.vdocuments.us/reader030/viewer/2022041100/5ed6a8ba39f16f294d573936/html5/thumbnails/6.jpg)
Total Employment Growth
Monthly Change
October: 128
September: 180
August: 219
Source: Bureau of Labor Statistics/Haver Analytics
6
-800
-700
-600
-500
-400
-300
-200
-100
0
100
200
300
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Average Monthly Change, Thous.
![Page 7: National and Regional Economic Outlooksfc.virginia.gov/pdf/retreat/2019 Harrisonburg/112119_No1...National and Regional Economic Outlook VA Senate Finance Committee November 21, 2019](https://reader030.vdocuments.us/reader030/viewer/2022041100/5ed6a8ba39f16f294d573936/html5/thumbnails/7.jpg)
Unemployment Rate
Source: Bureau of Labor Statistics, Federal Reserve Board of Governors/Haver Analytics
0
1
2
3
4
5
6
7
8
9
10
11
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
UnemploymentRate (Percent)
October 2019
US: 3.6%
7
![Page 8: National and Regional Economic Outlooksfc.virginia.gov/pdf/retreat/2019 Harrisonburg/112119_No1...National and Regional Economic Outlook VA Senate Finance Committee November 21, 2019](https://reader030.vdocuments.us/reader030/viewer/2022041100/5ed6a8ba39f16f294d573936/html5/thumbnails/8.jpg)
Non-residential Fixed Investment
8
-30
-25
-20
-15
-10
-5
0
5
10
15
20
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
% Change, SAAR
Q3: 2019
-3.0%
![Page 9: National and Regional Economic Outlooksfc.virginia.gov/pdf/retreat/2019 Harrisonburg/112119_No1...National and Regional Economic Outlook VA Senate Finance Committee November 21, 2019](https://reader030.vdocuments.us/reader030/viewer/2022041100/5ed6a8ba39f16f294d573936/html5/thumbnails/9.jpg)
University of Michigan Consumer Expectations
Source: University of Michigan via Haver Analytics
40
50
60
70
80
90
100
2009 2011 2013 2015 2017 2019
Index, Q1 1966=100
Oct
9
![Page 10: National and Regional Economic Outlooksfc.virginia.gov/pdf/retreat/2019 Harrisonburg/112119_No1...National and Regional Economic Outlook VA Senate Finance Committee November 21, 2019](https://reader030.vdocuments.us/reader030/viewer/2022041100/5ed6a8ba39f16f294d573936/html5/thumbnails/10.jpg)
National Federation of Independent Business
80
85
90
95
100
105
110
80
85
90
95
100
105
110
2009 2011 2013 2015 2017 2019
Index, 1986=100
Sep
Source: NFIB via Haver Analytics
10
![Page 11: National and Regional Economic Outlooksfc.virginia.gov/pdf/retreat/2019 Harrisonburg/112119_No1...National and Regional Economic Outlook VA Senate Finance Committee November 21, 2019](https://reader030.vdocuments.us/reader030/viewer/2022041100/5ed6a8ba39f16f294d573936/html5/thumbnails/11.jpg)
Duke/CFO Survey
50
55
60
65
70
75
50
55
60
65
70
75
2009 2011 2013 2015 2017 2019
Index, 100 = Most Optimistic
Q3
Source: Duke/CFO via Haver Analytics
11
![Page 12: National and Regional Economic Outlooksfc.virginia.gov/pdf/retreat/2019 Harrisonburg/112119_No1...National and Regional Economic Outlook VA Senate Finance Committee November 21, 2019](https://reader030.vdocuments.us/reader030/viewer/2022041100/5ed6a8ba39f16f294d573936/html5/thumbnails/12.jpg)
Regional Economic Trends
12
![Page 13: National and Regional Economic Outlooksfc.virginia.gov/pdf/retreat/2019 Harrisonburg/112119_No1...National and Regional Economic Outlook VA Senate Finance Committee November 21, 2019](https://reader030.vdocuments.us/reader030/viewer/2022041100/5ed6a8ba39f16f294d573936/html5/thumbnails/13.jpg)
30
35
40
45
50
55
60
65
70
-40
-30
-20
-10
0
10
20
30
40
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
3-m
onth
avera
ge
Manufacturing Composite Index (Left Axis)
ISM Manufacturing (Right Axis)
Richmond Manufacturing Survey and ISM Manufacturing Survey
Economic Activity in the Fifth District
Manufacturing Sector
Source: The Federal Reserve Bank of Richmond/Institute of Supply Management
13
![Page 14: National and Regional Economic Outlooksfc.virginia.gov/pdf/retreat/2019 Harrisonburg/112119_No1...National and Regional Economic Outlook VA Senate Finance Committee November 21, 2019](https://reader030.vdocuments.us/reader030/viewer/2022041100/5ed6a8ba39f16f294d573936/html5/thumbnails/14.jpg)
Economic Activity in the Fifth District
Service Sector
30
35
40
45
50
55
60
65
70
-40
-30
-20
-10
0
10
20
30
40
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
3-m
onth
avera
ge
Services Revenue Index (Left Axis)
ISM Nonmanufacturing (Right Axis)
Richmond Service Sector Survey and ISM Nonmanufacturing Survey
Source: The Federal Reserve Bank of Richmond/Institute of Supply Management
14
![Page 15: National and Regional Economic Outlooksfc.virginia.gov/pdf/retreat/2019 Harrisonburg/112119_No1...National and Regional Economic Outlook VA Senate Finance Committee November 21, 2019](https://reader030.vdocuments.us/reader030/viewer/2022041100/5ed6a8ba39f16f294d573936/html5/thumbnails/15.jpg)
Payroll Employment
-6
-5
-4
-3
-2
-1
0
1
2
3
4
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
YoY % Chg (SA) U.S.
Virginia
September 2019
US: 1.4%
VA: 0.6%
Source: Bureau of Labor Statistics/Haver Analytics
15
![Page 16: National and Regional Economic Outlooksfc.virginia.gov/pdf/retreat/2019 Harrisonburg/112119_No1...National and Regional Economic Outlook VA Senate Finance Committee November 21, 2019](https://reader030.vdocuments.us/reader030/viewer/2022041100/5ed6a8ba39f16f294d573936/html5/thumbnails/16.jpg)
16
![Page 17: National and Regional Economic Outlooksfc.virginia.gov/pdf/retreat/2019 Harrisonburg/112119_No1...National and Regional Economic Outlook VA Senate Finance Committee November 21, 2019](https://reader030.vdocuments.us/reader030/viewer/2022041100/5ed6a8ba39f16f294d573936/html5/thumbnails/17.jpg)
MSA Employment Growth
Source: Bureau of Labor Statistics/Haver Analytics
3.0
2.2
1.7
1.4
1.1
1.0
0.8
0.6
0.6
0.4
-0.1
-1 0 1 2 3 4
Winchester
Harrisonburg
Charlottesville
U.S
Roanoke
Northern Virginia
Richmond
Virginia
Virginia Beach
Lynchburg
Blacksburg
YoY% Change (SA)
September 2019
17
![Page 18: National and Regional Economic Outlooksfc.virginia.gov/pdf/retreat/2019 Harrisonburg/112119_No1...National and Regional Economic Outlook VA Senate Finance Committee November 21, 2019](https://reader030.vdocuments.us/reader030/viewer/2022041100/5ed6a8ba39f16f294d573936/html5/thumbnails/18.jpg)
Virginia MSA Total Employment
18
Blacksburg
Charlottesville
Harrisonburg
Lynchburg Northern Virginia
Richmond
Roanoke
StauntonVirginia Beach
Winchester
0.0
0.5
1.0
1.5
2.0
2.5
-1 0 1 2 3 4
10-year Average Annual % Change
YoY % Change
Bubble size = Total Employment - September 2019
Source: Bureau of Labor Statistics/Haver Analytics
![Page 19: National and Regional Economic Outlooksfc.virginia.gov/pdf/retreat/2019 Harrisonburg/112119_No1...National and Regional Economic Outlook VA Senate Finance Committee November 21, 2019](https://reader030.vdocuments.us/reader030/viewer/2022041100/5ed6a8ba39f16f294d573936/html5/thumbnails/19.jpg)
Virginia Unemployment Rate
0
1
2
3
4
5
6
7
8
9
10
11
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
PercentU.S.
Virginia
Source: Bureau of Labor Statistics/Haver Analytics
September 2019
US: 3.5%
VA: 2.7%
19
![Page 20: National and Regional Economic Outlooksfc.virginia.gov/pdf/retreat/2019 Harrisonburg/112119_No1...National and Regional Economic Outlook VA Senate Finance Committee November 21, 2019](https://reader030.vdocuments.us/reader030/viewer/2022041100/5ed6a8ba39f16f294d573936/html5/thumbnails/20.jpg)
Unemployment in Virginia Counties
Source: Bureau of Labor Statistics/Haver Analytics
20
![Page 21: National and Regional Economic Outlooksfc.virginia.gov/pdf/retreat/2019 Harrisonburg/112119_No1...National and Regional Economic Outlook VA Senate Finance Committee November 21, 2019](https://reader030.vdocuments.us/reader030/viewer/2022041100/5ed6a8ba39f16f294d573936/html5/thumbnails/21.jpg)
Summary
• Recent economic data indicates continued growth
in the U.S. economy. Labor markets are tight and
consumer spending is solid.
• However, recent data on investment has been
soft, manufacturing activity seems to be slowing,
and sentiment continues to be less positive than it
was through most of 2018.
• The Virginia economy is growing, although at a
slower pace than that of the nation. Of course,
economic conditions vary among regions of the
Commonwealth.
21
![Page 22: National and Regional Economic Outlooksfc.virginia.gov/pdf/retreat/2019 Harrisonburg/112119_No1...National and Regional Economic Outlook VA Senate Finance Committee November 21, 2019](https://reader030.vdocuments.us/reader030/viewer/2022041100/5ed6a8ba39f16f294d573936/html5/thumbnails/22.jpg)
The views and opinions expressed herein are those of the
author. They do not represent an official position of the Federal
Reserve Bank of Richmond or the Federal Reserve System.
Questions?
22