Arizona's in Recession- But We Knew That

Moody’s is saying what we’ve been saying for awhile- Arizona is in a recession:  [Thanks L!]

The Phoenix and Tucson metropolitan areas, as well as the state of Arizona, are in a recession, economists at Moody’s Economy.com have declared.

The company first concluded several weeks ago that Arizona was in a recession and, in a separate report released Thursday, said that metro Phoenix is "firmly" in one.

Industries are shedding jobs, the housing market remains tumultuous, the mortgage-delinquency rate is rising faster than the national rate and credit conditions aren’t likely to improve in the near term, says the Phoenix report written by Rebecca Seweryn, a senior economist with Moody’s in West Chester, Pa. 

Reports of a ‘potential bottom’ have been vastly overstated.

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3 Comments for this entry

  1. Yossarian says:
    May 10, 2008 at 11:30 PM

    Gee, what a surprise. The Phoenix area is dependent on RE and construction related industries, for 30 to 40 percent of its overall job creation.
    Like I’ve said before… when a good percentage of these FIRE (Finance, Insurance, Real Estate) jobs dissapears….. that will result in an actual Depression in the Phoenix area. There will be extended unemployment well into the teens. It will last for months, if not years.
    What will ever give Phoenix reason to recover? Certainly not the availability of water. Not the excess numbers of suburban mcmansions … perhaps it will be solar energy, or solar heat, eventually.

  2. RunnerInPeoria says:
    May 11, 2008 at 4:34 AM

    Yossarian – I agree and have posted similar comments concerning the AZ economic single point of failure. Simply look to Detroit, Cleveland et al to see the economic wreckage left by the crumbling automotive industry. I fear Phoenix will experience the same future. Other large cities such as New York, Chicago, Atlanta and Dallas all have a strong corporate presence which translates into higher paying jobs which of course trickles down to the local economy. Phoenix being the 5th largest city in the country has fewer fortune 500 offices than Omaha, NE. That statement in itself should speak volumes about the economic weakness AZ really faces.

    Just my two cents….

  3. NVmike says:
    May 11, 2008 at 3:23 PM

    More bad news from Phoenix: http://tinyurl.com/5awxur

    Bankruptcy filings doubled in April
    Russ Wiles
    The Arizona Republic
    May. 9, 2008 12:00 AM

    The number of Phoenix-area bankruptcy filings more than doubled in April as the soft economy and lingering housing ills came home to roost.

    In the Phoenix area, 1,104 consumers and businesses filed for protection from creditors last month, up from 548 in April 2007, the U.S. Bankruptcy Court in Phoenix reported.

    That’s the largest year-over-year increase since a 345 percent surge in October 2005, shortly before a change in federal law tightened the rules on such filings.

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