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Economy still growing, data center construction driving growth, economist says - Talk Business & Politics

Economy still grows with data centers and AI investment driving much of the expansion, according to University of Arkansas economist Mervin Jebaraj.
GDP growth is expected in Q2 around 2.5% to 3%, signaling a resilient economy despite energy-driven inflation.
Labor market shows growth but with moderation; one-off events can affect monthly unemployment figures.
Consumer sentiment has fallen to levels seen during the Great Recession, though spending persists.
Energy prices are driving inflation, while real wages remain flat or decline after inflation adjustment.
Northwest Arkansas sees rising rents and strong multifamily demand despite higher mortgage costs.
AI impact on jobs remains uncertain; a correction could occur with a recession, the economist says.
Service inflation persists, contributing to higher costs for higher-income households.
University of Arkansas economist presented at a Quarterly Business Analysis Luncheon in Fayetteville.
Regional employment remains resilient; Northwest Arkansas shows growth in leisure, hospitality, and professional services.

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