May was a good month for the northwest Arkansas economy, according to the latest data from the Arkansas Tech Business Index.
The top four spots on the May ATBI belong to Bentonville (107.26), Rogers (105.98), Fayetteville (105.57) and Springdale (105.06).
“We all know that northwest Arkansas has been an engine for economic growth in Arkansas,” said Marc Fusaro, associate professor of economics and the developer of the index. “Bentonville is above 100 in all four categories. Their secret is being consistent across all the sectors that we measure.”
The ATBI, an index created by the Arkansas Tech University College of Business and sponsored by Arvest Bank, provides a snapshot of economic activity in Arkansas cities. The monthly report analyzes a labor, housing, construction and retail conditions.
Fusaro’s team examines each sector to compile an index based around 100. A rating above 100 indicates that the city is performing better than the state average from 2009 to the present.
Of the 18 municipalities on the ATBI, 16 saw an increase in their rating during the fifth month of the year. Of the 17 monthly releases of the ATBI since it was established in January 2014, three cities have held the No. 1 position: Fort Smith (12 times), Bentonville (three times) and Fayetteville (two times).
In May, Little Rock took the last spot on the list, with a 93.32 index and +0.12 month-to-month change.
“They definitely didn’t do well,” Fusaro said. “With Little Rock, their strength is retail, which is at 104, which is above average and doing well … The real problem there right now is the housing index is 89. We break it into two categories: number of units sold and the price. With Little Rock, the number of units sold is holding up steady … The weak spot is in the average price, which quite low.”
Fusaro said the average home price in Pulaski County is about $199,000, which he called “weak.”
Fort Smith sat atop the index for five consecutive months from December to April before slipping to fifth place in May with a rating of 103.21.
Here’s the complete list of May ratings and their month-to-month change:
- Bentonville: 107.26 (+1.32)
- Rogers: 105.98 (+3.62)
- Fayetteville: 105.57 (+1.32)
- Springdale: 105.06 (+1.70)
- Fort Smith: 103.21 ((+0.35)
- Conway: 101.41 (-1.63)
- Mountain Home: 101.04 (+1.70)
- Hot Springs: 100.76 (+0.62)
- Van Buren: 100.25 (+1.39)
- Russellville: 99.95 (+1.21)
- Jonesboro: 98.71 (-0.43)
- Searcy: 98.10 (+0.97)
- West Memphis: 97.71 (+2.36)
- Texarkana: 97.25 (+1.01)
- El Dorado: 96.76 (+1.26)
- North Little Rock: 96.33 (+1.01)
- Pine Bluff: 95.19 (+2.41)
- Little Rock 93.32 (+0.12)