Home-building still strong

Wednesday, Oct. 23, 1996 | 11:59 a.m.

Nevada's economy remains vibrant with a 29 percent increase in residential building permits in the first seven months of 1996 to lead Western states in housing growth.

The Silver State also finished strong in new manufacturing jobs and total nonagricultural job growth categories during the first seven months of 1996 over the same time frame the previous year, according to the October edition of the Western Blue Chip Economic Forecast, a publication of Arizona State University.

Multifamily residential permits were up by more than 60 percent in Nevada while single-family permits were 15 percent higher than a year ago, the report said.

In addition to Nevada, the western states of Colorado, Utah, California and Idaho outpaced the U.S. average -- a 13.2 percent increase in residential building permits for the first six months. Strong percentage changes in single-family permits were reported in Texas (27.7 percent), Idaho (22.3 percent), and Colorado (18.3 percent).

Previously ASU's team of forecasters expected only California to post double-digit housing growth in 1996. Only New Mexico reported permit levels below last year's, according to the forecast.

California topped the nation in new manufacturing jobs at 30,000 for a 1.7 percent increase. Nevada didn't make the list because of the relatively small size of its manufacturing sector compared to other states.

But it did turn in a strong performance in annual percentage growth in manufacturing jobs which, along with Utah and Idaho, exceeded 5 percent. Utah leads the nation in the rate of growth of manufacturing employment, with an year-to-year advance of 5.6 percent in July.

"Washington's comeback is closely linked to the fortunes of the Boeing Co.," the forecast said. The aerospace giant is gearing up to double production by early 1998 and intends to hire some 6,700 workers by year end.

Additionally the western states of Idaho, New Mexico, Wyoming and Washington all reported increases in manufacturing employment over the year. Those states posted job losses in that sector in 1995.

North Carolina was the hardest hit among states losing manufacturing jobs. Positions in the employment sector were down by 18,300 between July 1995 and July 1996.

Nevada led the nation in nonagricultural job growth, posting a 7.1 percent increase in July 1996 over July 1995. Second was Utah at 6 percent followed by Idaho at 5.2 percent, Georgia at 5 percent and New Mexico with 4.7 percent. Washington, Colorado and California were 13th, 14th and 15th respectively with 2.5 percent job growth.

The ASU forecast sees Nevada's rapid population growth slowing slightly next year, while housing permits could drop by as much as two percentage points. Wage and salary employment will remain about the same while gross gaming revenues could be up 0.6 to 0.7 percent.