Tracking Recovery continued

Building Permits

A final economic indicator reflects construction activity, traditionally a major element in Tennessee's economy. It is no secret that the most important cause of the recession was the collapse of the housing market across the country and, for that matter, internationally. The website devotes considerable attention to the housing market. Unfortunately, data are not available for every county, so building permit data are reported only for the state and the metropolitan areas. Figure 8 below gives the number of permits issued for single-family housing units since January 2008.

The same pattern is repeated in the chart: the number of permits issued dropped precipitously following the peak and has been up and down since that time. Building permits follow a distinct seasonal pattern. At best, the chart indicates that construction activity has reached a plateau and is no longer declining. Keep in mind the admonition about the variance of economic measures across the state.

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Fig. 8. Tennessee Building Permits

Source: BERC, U.S. Bureau of the Census

For current information on the southeastern U.S. economy and the 6th Federal Reserve District, see the most recent Beige Book.

Conclusion

In conclusion, the Tennessee Advisory Commission on Intergovernmental Relations with the aid of Middle Tennessee State University's Business and Economic Research Center is making every effort to keep Tennesseans and their public officials informed about the state of the economy. The Tracking Tennessee's Economic Recovery website is one tool that is available to everyone at no charge.

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*The Business and Economic Research Center (BERC) at Middle Tennessee State University provides current regional economic data as a public service and conducts economic impact studies on commission. The Tennessee Advisory Commission on Intergovernmental Relations (TACIR), consisting of public officials from state and local government and private citizen members, serves as a forum for the discussion and resolution of intergovernmental problems. This article was originally published by the Tennessee County Services Association.