Savannah Metro Area Economy Shows Signs of Recovery

News Summary

The Savannah metro area’s economy has rebounded in the fourth quarter, with a 0.5% increase in the business index. Recovery is driven by tourism and robust port operations, despite some job losses in specific sectors. Employment figures indicate positive growth, with notable gains in leisure, hospitality, and logistics. Economic forecasts hint at challenges ahead, but experts believe Savannah’s economy may outpace other regions, supported by strong manufacturing sectors. Increased demand for housing continues as prices rise amid limited inventory.

Savannah – The economy of the Savannah metro area has shown signs of considerable recovery, resuming growth in the fourth quarter of 2024 after facing setbacks due to hurricane-related disruptions earlier in the year. Data from Georgia Southern University’s Q4 Economic Monitor reports a 0.5% increase in the business index for the Savannah metro region, equating to an annualized growth rate of 2.1%.

This recovery has been significantly driven by a resurgence in tourist-related activities and robust operations from the Georgia Ports Authority, as highlighted by local economic experts. The labor market has also remained resilient, evidenced by a sharp decline in initial unemployment insurance claims which dropped by 12%, falling from 731 claims in the previous quarter to 642 in Q4.

Further analysis revealed that the unemployment rate in the Savannah metro area decreased to 2.9%, down from 3.4%. Total employment figures have also seen a positive uptick as employers added 100 new jobs, bringing total employment to 208,100 individuals within the region. The leisure and hospitality sectors, in particular, highlighted noteworthy employment gains with an addition of 800 jobs, while the logistics sector saw an increase of 600 jobs.

Despite these gains, some sectors recorded job losses during this period. The business and professional services sector lost 200 positions, while wholesale trade experienced a downturn of 400 jobs. Nevertheless, the overall job market has shown promising signs of recovery, adjusting to the fluctuating demands and consumer trends in the region.

Tourism indicators are rebounding strongly as well. Seasonally adjusted hotel and motel taxes rose by 16%, accompanied by a 10.3% increase in airport boardings compared to the prior quarter. Retail sales have also surged, marking a 5% growth bolstered by the heightened tourist activity.

In terms of port activity, the Savannah area experienced a 4.2% rise in the handling of shipping container units, with overall activity up nearly 10% compared to the same quarter last year. The logistics sector, which employs approximately 19,800 workers, continues to be a critical pillar of economic strength in the region.

On the construction front, employment decreased slightly by 100 jobs, stabilizing at 10,200 positions, while the manufacturing sector remained unchanged with a workforce of 22,900. Private-sector wages saw an increase as well, rising by 2% when adjusted for inflation, from $25.27 to $25.78 per hour, marking a notable 3.8% rise over the year.

Additionally, the construction market has observed a positive trend with a 12% increase in permits issued for single-family homes, totaling 797 permits. This represents an 18.5% increase compared to the previous year, although the average value of single-family building permits saw a slight decrease of 3.6%, now averaging $252,200.

Looking ahead, economic forecasts indicate potential challenges for 2025, attributed to evolving international trade flows and changes in U.S. trade policy. Nevertheless, experts predict that Savannah’s economy will potentially outpace that of other regions within Georgia and the national economy, largely due to the successes in the manufacturing sector, guided by companies like Gulfstream and Hyundai.

The Chamber of Commerce anticipates that job growth will maintain demand for housing, despite challenges such as rising fuel costs and changing trade policies. The median price for homes in Chatham County has seen significant increases throughout 2023 and 2024, driven by limited inventory, and this trend may likely continue into the next year.

Deeper Dive: News & Info About This Topic

• Grice Connect: Georgia Southern Q4 2024 Economic Monitor
• Savannah Now: Savannah Economy Bolstered by Hyundai
• WTOC: Events Happening in Savannah’s Small Business Week
• The New York Times: Port Strike and Savannah Economy
• Georgia Recorder: Trump Pitches Economic Plan in Savannah
• Wikipedia: Economic Indicators
• Google Search: Economic Outlook Savannah
• Google Scholar: Savannah Economy
• Encyclopedia Britannica: Economics
• Google News: Savannah Business News