State economy saw growth last year

BY DANIEL MCKAY //  WHITEFISH PILOT //  February 18, 2020

The state economy bounced back from stagnation last year with help from western counties and increased construction activity, among other factors, according to economists from the University of Montana visiting last week for the 2019 Economic Outlook Seminar.

State revenues in 2017 were weak due to a stagnant economy in 2016, said Patrick Barkey of the Bureau of Business and Economic Research (BBER), but 2018 revenues were stronger thanks in part to a surge in construction across the state but particularly in Flathead, Gallatin, and Missoula counties.

The three counties accounted for 75 percent of statewide construction earnings in 2017, with commercial and multifamily projects especially strong. Access to affordable housing remains an issue, as housing-price growth once again outpaced income growth.

Barkey said partial data indicates that 2018 saw continued growth, and that state revenue is off to a good start in 2019. However, this growth has largely missed the agricultural sector, which has faced low prices, drought, fire, and now the prospect of tariff-related disruptions in access to the market. The recently passed federal Farm Bill should help the agriculture industry, he said.

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