County best in state for economic growth

Nick Malawskey

The economic output of Centre County grew faster than any other region of Pennsylvania last year, even as unemployment rose to levels not seen in more than a decade.

Businesses in Centre County generated $278 million more in goods and services in 2008 than they did the year before, according to a report issued Thursday by the federal Department of Commerce.

John Coleman, president of the Chamber of Business and Industry of Centre County, said the uptick in production was good news and a sign of the strength within the local economy.

“I think the big picture good news is that Centre County is the only (metropolitan statistical area) that is seeing fairly positive GDP growth in all of Pennsylvania,” he said.

The production increase was led by financial and educational services, both of which increased production by about a half-percent. Overall the gross domestic product for the county reached $5.5 billion last year, almost $1 billion more than in 2005.

That averages out to about $38,000 per capita, up from $35,000 per capita in 2006 and a continuation of an upward trend over the past five years.

“That means that the economic output of State College grew by 3 percent, so (the area) is producing more goods and services than before,” said Ralph Stewart, of the Commerce Department.

What remains to be seen is if the area’s economy continued to expand in 2009.

Across the nation many urban areas saw their economies contract, or at best slow down, in 2008 as the recession reduced the demand for goods and services. More than two-thirds of the areas represented in the study showed signs of a slowing economy last year, including Altoona, Johnstown, Harrisburg-Carlisle and Pittsburgh.

State College’s economy was 54th-fastest growing out of 334 areas across the nation included in the report.

What Coleman said was particularly impressive was that the report did not indicate any sectors where revenue generation fell dramatically in 2008.

“I’m not seeing any particular indication of decline,” Coleman said. “In fact, there are few areas that are showing any weaknesses.”

At the state Department of Labor and Industry, spokesman Christopher Manlove said the county’s steadiness, even in a recession, is not entirely unexpected.

“To see that Centre County’s economy has fared better than the rest of the commonwealth or even compared to the rest of the nation, isn’t really surprising,” Manlove said. “The economy in Centre County is so grounded by the university that some of the challenges that have befallen other industries have not affected Centre County as much.”

That includes manufacturing, a sector that slashed jobs over the past year across Pennsylvania. Still, said Manlove, it’s hard for declines in other industries to dent the overall employment picture within the county.

Unemployment within the county has increased over the past year, rising by May to 5.9 percent, the highest level in 23 years. By July, the unemployment rate in the county had dropped slightly to 5.8 percent.

Even in this respect, however, Centre County is doing relatively well, with the lowest unemployment rate in the state.

The rate has also increased at a slower pace than the rest of the state — while Pennsylvania’s unemployment rate increased during the past 12 months by about 3 percent, Centre County’s increased by just half that amount.

“It’s affected differently than elsewhere,” Manlove said. “And the economy in Centre County is stable primarily because of the stability the university affords. In many ways, it’s fortunate.”

Nick Malawskey can be reached at 235-3928.