Tuesday, June 24, 1997

Abilene economy reaches all-time peak in 1996 before fourth quarter

By DOUG WILLIAMSON

Business Editor

Abilene's economy surpassed the $3 billion mark in 1996 for the first time, new figures show.

However, its growth slowed in the fourth quarter 1996, according to statistics from the Comptroller's Office.

During 1996, the economy grew at a 1.2 percent rate, substantially slower than in previous years. Four of the previous five years, it grew at more than 6 percent per year.

Gross sales in the fourth quarter fell 1.2 percent from $816 million in 1995 to $806 million last year. Retail sales, however, rose 2.0 percent during the same period.

Statewide, gross sales were down 16.3 percent and retail was stagnant, down 0.3 percent.

"I'm not nearly as concerned about the decline locally, when we put it in the perspective of the state as a whole," said Dr. Thomas Kim, economist-in-residence at Abilene Christian University. "It reassures me that when the statewide sales decline that much and we are less."

Kim credits economic development efforts of the Abilene Industrial Foundation, Abilene Chamber of Commerce and City of Abilene with giving the town the diversity it needs.

"The diversity of the Abilene economy with different industries makes us structured in such a way that if we have a downturn, we can survive it," he said.

The local services sector took the greatest hit, falling $41 million or 32.0 percent. Percentagewise, liquor stores showed the largest increase at 20.0 percent, ending the quarter at $3.7 million.

Sector gainers included construction, up 6.2 percent; manufacturing, up 8.5 percent; transportation and utilities, up 17.2 percent; wholesale durable goods, up 12.6 percent; and financial services, up 10.8 percent.

Losers were agriculture, down 3.9, and wholesale nondurable goods.