AWBI - In Tri-Cities, the Numbers Show Recovery in Progress

The Vitals

By the Association of Washington Business Institute

​Businesses are still working through the pandemic — but local economies in Washington are posting strong recoveries.
 
That includes the Tri-Cities economy. The proof is in the numbers.  
 
At the Association of Washington Business Institute, we’ve created a set of economic indicators called the Recovery Vitals. It’s an easy-to-access set of stats that shows whether counties, MSAs and the state are making progress — and how your local economy stacks up against others. And it’s regularly updated by our partners at the Eastern Washington University Institute for Public Policy & Economic Analysis.
 
In the Kennewick-Pasco-Richland-West Richland area, you’re making progress. Among other strengths, the Recovery Vitals show improvement in the Tri-Cities’:
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• Taxable quarterly retail sales. In Q2 of 2021, the Tri-Cities saw a 32.8% year-over-year increase. That’s a great sign, because it reflects a steep rise in consumer spending — the largest part of any economy. That local figure compares with a 33.6% increase in the state.
• Residential building permits. After a steep decline that started in Q3 of 2020, permits were back up in Q2 of 2021. In fact, they were way up — to 1.76 permits per 1,000 residents, compared with 0.09 permits per 1,000 in Q1 of 2021. The statewide rate was 1.48 in Q2. An increase in residential permits signals ramped-up activity in the construction trades and real estate. It’s also a signal to local governments about future sales tax revenue, because home building leads to taxable sales.

 
Different indicators in the Recovery Vitals are updated monthly, quarterly or at longer intervals, depending on how the data is collected. More recent data can help businesses and communities adjust immediate plans and focus resources where they’re most needed. Longer-term data, such as median household income and per-capita personal income, is helpful for understanding big-picture progress and challenges.

We encourage you to explore the Recovery Vitals. They’re part of a free, interactive resource that brings together more than 30 key economic indicators for every county or MSA in Washington. You also can compare one area’s stats with another’s or against the state average.
 
The tool is part of Washington in the Making, a framework for the state’s economic recovery that envisions lasting prosperity for every community in Washington. In the Tri-Cities, we’re glad to see a business community that’s building back strong.

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