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2. ON THE ECONOMIC, BUSINESS AND POLITICAL CLIMATE Roger Tutterow, Ph.D. Coles College of Business Kennesaw State University rtuttero@kennesaw.edu College Park, GA February 18, 2015

3. GDP vs. Final Sales

4. Average GDP Growth Rate 4.7

5. ISM’s “PMI”

6. Consumer Sentiment

7. CONSUMER SENTIMENT

8. Leading Economic Indicators (source: Conference Board, % change in last 6 months)

9. Change in Employment (non-farm payrolls)

10. State Employment (Jobs Lost)

11. State Employment (Jobs Added)

12. State Employment (Net Change)

13. Employment: Georgia

14. Level of Employment: ATL

15. Change in Employment: ATL

16. Location Quotient: Atlanta

17. Location Quotient: South Metro vs Atlanta

18. Job Loss by Sector: Recession

19. Job Growth by Sector: Recovery

20. Location Quotient: South Metro vs Atlanta

21. Crude Oil (Spot Price, WTI)

22. Federal Funds Rate Time to Move Near?

23. 10-Year Treasury Bond

24. “Five Little PIIGS”

25. FX: Major Trading Partners

26. Bank Credit Loosening?

27. Bankers on C&I Loan Demand?

28. Construction Spending

29. Construction Spending: Private

30. Non-Residential Construction

31. US Housing Starts: SF and Total (12 month moving average)

32. US Housing Starts: Multi-family (12 month moving average)

33. ATL Housing Starts: SF and Total (12 month moving average)

34. ATL Housing Starts: Multi-family (12 month moving average)

35. The Demographics: Boom & Bust

36. Home Prices & CPI

37. CS/S&P Home Price Index (FROM PEAK TO NOVEMBER 2014)

38. Case Shiller: Atlanta & US-20

39. Case Shiller: Atlanta by Tier

40. Household RE Equity (in $ Billions)

41. Home Investor Purchases

42. Investor Activity

43. Currents Issues in Fiscal Affairs Federal: – “Bush Cuts” < 400K made permanent – Government default avoided in 2011 & 2013 – what about 2015? – In Play: Affordable Care Act, Keystone, Dodd-Frank, EPA, NLRB, SCOTUS States: – Bond ratings preserved during downturn – Tax Reform Initiatives in other States – Recent gains in manufacturing facilities due to “reshoring” – SE states domination biz location ranking Local: – RE valuation and revenues rising – Fiscal distress moderating

44. ON THE ECONOMIC, BUSINESS AND POLITICAL CLIMATE Roger Tutterow, Ph.D. Coles College of Business Kennesaw State University rtuttero@kennesaw.edu College Park, GA February 18, 2015