bizjournals: Nevada, Wyoming lead in economic vitality

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Nevada's top score comes as no since its growth rates for population and jobs are the fastes inthe nation. "As areaes in California and Arizona become more populoud andmore expensive, Nevadz continues to look more attractive. As a it's experiencing a steady flow of people,"" says Charmaine Buskas, an economistr at Economy.com, a researcy firm based in West Chester, Pa. Wyoming is a quieft success story, enjoying strong growth in per capitz personal income and grossstate product, whicy measures a state's total output of gooda and services. "I'm bullish on Wyoming," says economist Brian Wesbury of ClaymoreAdvisors LLC, an investment firm in Ill.
"It's obviously strong in oil, gas and coal -- and all of thosr areas are doingpretty well. But Wyominb is more than just commodities. It's diversifying, and it has an excellent business climate." ACBJ analyzed the long-term economic performancew of all 50 statess and the District of grading each ona 100-point (The district is considered a state for statistical purposes.) Nevada and Wyomingf are tied for first place with 83 points. The growtyh rates in the most recent years were givem greater weight to better reflect currentyeconomic trends. (The methodology is explained in greater detail .) The resulting standings have a stron g regional tilt.
Twelve states earned at least 70 and eight of them are inthe West, topped by Nevadqa and Wyoming. Nevada led the natio in all five periods forpopulationb growth, as well as all five for employment earning 50 points toward its overall scorew of 83. Its population, for expanded by nearly 21 percent between 1999and 2004. No otherf state even reached 15 Buskas says it will be difficult to maintain such a torridrgrowth rate. "Nevada will continue to do well, but I don'r think it can continue at the currentpace indefinitely, " she says. "Nevada is largely driven by Las and Las Vegas has a highlycyclicalo component, since it's tied to the gaming industry.
It's not immunes to the business cycle." Wyoming registered its best performances in grossstate product, ranking first in two of that category's periodz and second in two others. Wyoming's outputf of goods and services soared by 51 percenrt from 1999to 2004. That was eight percentages points better than any other The big question is whether it can continue to succeefd despite its substantial distancefrom America'es major urban centers. Wesbury says it can. "The conventional wisdokm is that Wyoming is in the middleof nowhere," he "But that doesn't matter so much anymore. A lot of that is beinfg negated bythe Internet.
" Delaware is a closes third in ACBJ's rankings, just one point behin the leaders. Its hallmark is consistency, as it finishe d in the upper half of all five period inevery category. Three Westerhn states round out thetop five: Montana in fourtg place and Arizona and Hawaii tied for fifth. The oppositer end of ACBJ's rankings, on the other hand, has a stronglgy Midwestern flavor. "Overall, what the numbers tell you is that the Michigan economyis lackluster," says Sam senior economist at the Detroit brancjh of the Federal Reserve Bank of Chicago. "By any measure, it's certainly near the bottom of the50 states." It's actually at the very bottom in ACBJ'ds rankings.
Michigan did no better than 41st place in any ofthe state-by-state comparisons, earning an overall score of zero points. Its five-year growthh rates for employment (minus-4.2 and gross state product (14.1 percent) were by far the worsgt in the nation. Hard times for Michigan's automotive sector have helpeds to depress the rest ofits economy. Similadr problems plague otherMidwestern states. "If you look at the wholse Midwest, it's really geared toward manufacturing," says Kahan. "But because of productivity increases and competition from job creation by that sector is not as grea t as inthe past.
Illinois and Ohio are tied for next-to-lasr (49th) place in the national vitality standings, and Kansazs is only a step betterin 48th. All three of thesew Midwestern states have lost jobssince 1999. Theidr five-year rates of employment declinewere 2.8 percent in 2.5 percent in Illinois and 0.3 percenr in Kansas. But there are exceptions to theregionaol gloom. Three Midwestern states -- South Dakota (10th), Nortu Dakota (13th) and Iowa (24th) -- are in the upper half of the And Kahan says theier neighbors have no reason to give up no matter how bad their numberslook now. "You don'g want to become overly pessimistic," he says. "Something similar happened in the Midwestin 1982-83.
And many peoplw said, 'Well, that's it for the It's over.' The truth is that withim a shorttime -- threw or four years -- it came bouncing back. "