Year-end stats tell great economic story for state

In business and economics, nothing tells a story better than numbers. Art, literature, joy, sorrow these are all things that cannot be quantified, where the difference between good and bad is in the eye of the beholder. But in business it can be said, in almost every instance, that the bottom line is well, the bottom line.

That is why this year, in the Department of Economic Development's annual year-end report, it is particularly gratifying to see statistics that indicate a strong, vibrant economy, with little indication of even a hint of a slowdown.

Of course, as the old saying goes: "Figures don't lie. But liars figure," meaning that even hard numbers are open to interpretation. Even given that, Missouri closed out the century with some numbers that, by any measure, indicate the presence of a strong economic engine:

New and expanding businesses

An estimated 372 companies in industries targeted and assisted by DED either expanded or opened new facilities in the state, compared to 348 in 1998. Business categories targeted and tracked by the department include business and financial services; chemicals and materials manufacturing; electronics and electrical equipment manufacturing; health products and services; information and media services; food processing; wood and paper products production; transportation and equipment manufacturing; and tourism.

Unemployment

At 2.2 percent, Missouri's jobless rate remains well below the national average of 3.8 percent.

Job creation

Missouri saw a net gain of nearly 22,000 new jobs, with construction; education and government; and service and retail trade industries leading the way.

Inflation

Missouri's inflation rate stood at an estimated 1.3 percent in the closing days of 1999, compared to the U.S. average of 2.6 percent.

Personal income

Missouri workers saw their personal income grow about 3.5 percent.

Gross product

The sum of all goods and services produced in Missouri grew about 3.6 percent to an estimated $163 billion. The gross national product grew by about 4.2 percent.

Exports

Missouri exports to foreign nations rose to an estimated $7.8 billion in 1999, up almost 7 percent from the 1998 total.

Obviously, 1999 was a good year for Missouri businesses. A marked increase in new locations and expansions, increases in production, and solid gains in exports were achieved. But it was the Missouri worker who, overall, saw the biggest improvement in economic status.

With the creation of nearly 22,000 new jobs, more Missourians are working than ever before. And the 3.5 percent increase in personal income is more than twice the rate of inflation, meaning the average Missouri household saw a real increase in buying power. With a 2.2 percent unemployment rate, Missouri is at a level well below what most economists would define as full employment.

How does Missouri follow up 1999 with an equally successful 2000? It will be a challenge. We have identified some trends in the marketplace that we expect will come to bear in the year ahead, trends that we saw hints of in this past year.

Increasing competition from foreign businesses tops the list, as does the need to continually upgrade the education and skills of the work force. The global economy is becoming increasingly competitive, so we must turn our attention to the future if Missouri is to maintain its luster as a world-class place to live, work and do business.

As the people of Missouri embark on a new century, we do so with a great deal of ambition and enthusiasm. And even as we look back on a tremendously productive year, it's hard not to imagine that the best is yet to come.

(Joseph L. Driskill is director of Missouri's Department of Economic Development.)