Phoenix, Arizona - The Bureau of Economic Analysis recently released gross domestic product numbers for the first quarter of 2016. Arizona’s growth came in at a blistering 2.6 percent, tying for the 6th-fastest growth rate for any state in the nation, compared to the previous period.
By contrast, other states in the Southwest region of the United States experienced little or negative GDP growth. Texas had growth of only 0.3 percent while New Mexico experienced a negative growth rate of -0.6 percent and Oklahoma also experienced negative growth of -0.5 percent.
Sectors contributing most to our state’s 2.6 percent GDP growth during Q1 include real estate and rental and leasing; construction, finance and insurance; information; and agriculture, forestry, fishing and hunting.
Arizona’s Economic Growth is Leading to More Confident Consumers
According to a Rocky Mountain Poll conducted by the Behavior Research Center (BRC), Arizona consumer confidence climbed to 88.4 in June 2016. Confidence of Arizona consumers reached an historic low in January 2009 at 44.2, and has not been this close to 90.0 since July 2007.
Confidence Extends to All Areas of The State of Arizona
According to the poll, the consumer confidence index in Arizona’s rural counties was 78.3 and was 89.4 in Pima County while consumers in Maricopa County were the most confident with an index of 92.8.
Among other thoughts, Dr. Dennis Hoffman at the L. William Seidman Research Institute at the W.P. Carey School of Business indicated the following about the survey results: “. . . The poll suggests that the Arizona consumer, as in many past episodes, is willing to ignore external factors and forge ahead regardless. Private sector job growth remains strong in the state and is no doubt underpinning this confidence. And as local government educators gear up for fall hiring, overall employment growth and, based on this poll, consumer spending should accelerate.”