The Savannah metro economy finished quarter three with modest growth, a slight rebound from the previous quarter, according to the most recent Coastal Empire Economic Monitor by Georgia Southern University.
The "subdued growth" last quarter was led by gains in regional employment, sustained port activity and electricity sales that reflect activity from the area's residential, commercial and industrial sectors. The regional business index logged .1% growth in quarter three.
"This represents a modest uptick as compared to the 1.3% rate of decline in the second quarter," the monitor states.
A strong string of hires from Savannah-area employers during the third quarter added 1,800 workers to payrools. The new additions pushed total employment to a record-high 204,300 workers, according to the monitor.
The added workers came as first-time unemployment insurance claims jumped nearly 10% for a total of 796 for the quarter. But as those first-time claims increased, the Savannah metro unemployment rate remained at its 3% average for last year.
The reason could be a strong regional labor market pulling workers back into jobs at a quick pace, said Michael Toma, the Fuller E. Callaway Professor of Economics at Georgia Southern University. "There are ample opportunities for employment in our regional economy right now."
The overwhelming majority of new workers came in the service sector, where hospitality, education and health added about 1,000 employees. The total of new employees in the service sector was about 1,600 for the quarter.
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Savannah metro economy remains resilient
A few economic factors have kept the regional economy a bit impervious to inflation and the high interest rates set to combat it, Toma said.
One, the regional housing market has remained strong due to high demand and limited supply. Construction permits for single-family housing increased 11% from the previous quarter, the monitor states. Multi-family permits have also shown increases in the past couple years.
"The housing market has been really resilient," Toma said.
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Logistics and manufacturing set to bolster economic growth
Container traffic through the Georgia Ports stabilized in 2023, returning to its best pre-pandemic growth trend, according to the monitor. The COVID-19 pandemic brought an increase in purchases of in-home goods, which led to an increase in logistics traffic through the ports.