#1
#1 out of 1
business1d ago
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.
Vote 0