(The Center Square) – While unemployment remained low and below the national average, inflation cut into personal incomes in the Federal Reserve Bank of Kansas City's region.
The “10th District Economic Databook” stated the economy contracted slightly during the fourth quarter of 2022 in Colorado, Kansas, western Missouri, Nebraska, northern New Mexico, Oklahoma and Wyoming. The publication distributed Wednesday provides current economic information to help monitor trends and provide data to compare with previous information. The report also includes information on oil, gas and coal production.
Personal income increases were almost wiped out by inflation. Nominal personal incomes increased by 5.9% compared to last year. However, when adjusted for inflation, incomes increased only .3%.
Colorado had the highest percentage change in real personal income at 2.1% and a per capita personal income of $75,557. Kansas had the steepest decline in the region as personal incomes decreased 3.3% and its per capita income was $59,753.
The territory’s unemployment rate was 3.1% on Dec. 31, below the national rate of 3.5%. The region added 67,000 jobs during the quarter. Most of the job gains were in the manufacturing and leisure and hospitality sectors. The transportation and information sectors had slight declines in employment.
Home prices increased 10.9% in the third quarter of 2022 in the region compared to the same period in 2021. After an 18.6% year-to-year increase in the nation’s home prices measured in September 2021, home prices increased 12.4% in September 2022.
Wyoming had the highest increase in housing prices at 14.4% during the period, according to the Federal Housing Finance Agency purchase-only home price index. Missouri’s homes increased 12.3%, Kansas rose 12% and Colorado and Nebraska had 9.7% increases.
Housing permits declined 46.4% for single-family homes and 41% for multi-family homes in the region. Colorado had an 18.5% decrease in housing permits in September 2022 compared to the previous year. Colorado led the region with a 30% decrease in single-family permits compared to September 2022. Wyoming led the region with an increase of 18.56% in housing permits during the period.
An energy report from the bank reported activity slowed in the sector in late January. The price of West Texas Intermediate crude oil averaged $80.33 per barrel, down 8.6% compared to the previous quarter. The price of natural gas declined 39.8% for the week ending Jan. 27, according to the Henry Hub natural gas spot price report.
Approximately 28% of the nation’s active oil and gas drilling rigs are located in the 10th District, a 31% increase compared to last year. The nation’s 779 active rigs marked a 34.5% increase compared to last year.
Approximately 47% of the nation’s coal production took place in the 10th District, a 2.9% increase compared to November 2022. The nation’s coal production increased 1.1% compared to last November.
via Oklahoma's Center Square News