1. Cochise College Center for Economic Research Economic Review & Outlook Bisbee, Arizona

2. Cochise College Center for Economic Research

3. National Economy – Productivity Real GDP Growth 2005: 3.1% 2006: 2.9% 2007: 1 st Qtr: 0.6% 2 nd Qtr: 3.8% 3 rd Qtr: 4.9%

4. Cochise College Center for Economic Research National vs. State Productivity Arizona’s GDP grew by 6.8% in 2006 3 rd fastest growing state (economically) in the nation

5. Cochise College Center for Economic Research

6. National Economy - Inflation Consumer Price Index 2005: Up 3.4% 2006: Up 3.2% 2007: Up 2.6% (Jan-Oct) Energy prices up 12.3% (SAAR) in first 10 months of 2007 Petroleum-based energy up 20.6%

7. Cochise College Center for Economic Research National Economy – Interest Rates Federal Funds Rate Cut by 75 basis points since September Currently 4.5%, down from 5.25% Mortgage Rates 2005: 5.87% 2006: 6.58% 2007 (Jan-Oct): 6.48% Oct 2007: 6.5%

8. Cochise College Center for Economic Research The Local Economy

9. Cochise College Center for Economic Research Population Bisbee 2006 Population: 6,355 Down 3.3% from 2005 Up 4.4% since 2000 Average 0.7% per year since 2000 Cochise County 2006 Population: 135,150 Up 2.5% from 2005 Up 14.8% since 2000 Average 2.3% per year since 2000

10. Cochise College Center for Economic Research In 2011 Bisbee: 6,712 (Avg. 1.1% per year) Cochise County: 152,107 (Avg. 2.3% per year)

11. Cochise College Center for Economic Research

12. Unemployment Rate 2006 U.S.: 4.6% Arizona: 4.1% Cochise County: 4.5% Bisbee: 5.0% Jan-Oct 2007 U.S.: 4.6% Arizona: 3.7% Cochise County: 4.1% Bisbee: 4.6%

13. Cochise College Center for Economic Research Bisbee Labor Force and Jobs, 2002-2007

14. Cochise College Center for Economic Research Bisbee’s Top 10 Employers Cochise County (830) Copper Queen Community Hospital (166) Bisbee Unified School District (155) City of Bisbee (112) Catholic Community Services (104) Bisbee Hospitality Group (65) Copper Queen Hotel (61) Safeway (46) Turquoise Valley Golf, Restaurant & RV (38) SEABHS (24)

15. Cochise College Center for Economic Research Cochise County Job Growth: October Comparisons

16. Cochise College Center for Economic Research Average Annual Wage, 2006

17. Cochise College Center for Economic Research Average Hourly Wage, 2006

18. Cochise College Center for Economic Research Employment Outlook Continued slowing of job growth Rising unemployment More job losses in financial activities and construction countywide

19. Cochise College Center for Economic Research Retail Sales Restaurant and Bar Lodging Wholesale Trade Manufacturing Construction

20. Cochise College Center for Economic Research Bisbee Sales Tax Revenue, FY 06-07

21. Cochise College Center for Economic Research Bisbee Retail Sales Jan-Sep 2007 $24.5 million Up 8.5% Inflation-adjusted growth of 6.1% Strong, double-digit growth in the summer months (Jun-Aug) Down 0.5% in Sep

22. Cochise College Center for Economic Research Bisbee Restaurant & Bar Jan-Sep 2007 $5.5 million Down 0.5% Inflation-adjusted growth of -2.9% Sales down each month from Jun 07 through Sep 07 Down 8.7% in Sep

23. Cochise College Center for Economic Research Bisbee Accommodation Jan-Sep 2007 $1.7 million Up 38.2% Inflation-adjusted growth of 35.8% Sales up every month of 2007 except Aug (-7.6%) Strongest growth in Jun (141%) Up 21.4% in Sep

24. Cochise College Center for Economic Research Sales Outlook Slowing of retail sales Interest rate cuts in late 2007 may help in the short-run Leveling off of accommodation Continued slowdown of restaurant & bar sales

25. Cochise College Center for Economic Research

26. Cochise County New SFR Construction Jan-Jun 2007: Permits were down 56.7% (from 619 to 268) Source: Bright Future Business Consulting, Tucson, AZ

27. Cochise College Center for Economic Research Bisbee New SFR Construction 2006: 6 permits Down from 10 in 2005 Jan-Oct 2007: 6 permits Several projects in various stages

28. Cochise College Center for Economic Research MLS Home Sales, Jan-Nov 07 Cochise County Volume: 1,284 Down 9.2% Median price: $192,300 Up 1.2% Price per sq. ft.: $115.13 Down 3.7% Sale price/asking price: 96.1% Down from 97.1% DOM: 134 Up from 113 Current Inventory: 1,123 9 ½ -month supply Bisbee Volume: 94 Down 16.1% Median price: $142,250 Up 12.2% Price per sq. ft.: $115.79 Down 1.8% Sale price/asking price: 94.3% Down from 95% DOM: 150 Up from 123 Current Inventory: 136 15-month supply

29. Cochise College Center for Economic Research Bisbee Housing Affordability Index

30. Cochise College Center for Economic Research Outlook Home sales will continue to slow Stabilization of prices Several current and planned projects may impact recent trends

31. Cochise College Center for Economic Research Happy Holidays! Happy December

32. Cochise College Center for Economic Research