Kokomo.
Author | Parkison, Kathy |
As noted in the international, national, and state economies, the recovery is officially on, the economy is perking upward, and we expect continued growth. However, the Kokomo economy, while improving, is still lagging a bit behind Indiana and the nation.
Kokomo's economy remains heavily weighted toward manufacturing. Employment in manufacturing industries peaked statewide in May 2000, and while recent losses have been much less than before (with some months even posting gains), employment is still not anywhere close to its peak. So like the rest of the state, individuals and firms in the area remain apprehensive about the economy and what it holds for them personally. While unemployment in the area peaked in 2002 and has since dropped to about 5 percent, those numbers are still up from the pre-recession lows of about 2.5 percent. Many of these job losses will be permanent due to increasing productivity and job losses to overseas.
On the local front, the moves by the Fed to keep the lower interest rates and the incentives offered by the automobile manufacturers have kept auto sales fairly robust. This has protected jobs and production at the DaimlerChrysler plants--an important part of this local economy. In addition, low interest rates have allowed consumers to continue buying homes...
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