PNC Bank Outlook: Northeast Ohio economy to gain some momentum in 2015

Staff report

YOUNGSTOWN

Northeast Ohio’s economy will gain momentum in 2015, according to an economic outlook by PNC Bank.

Economists forecast the region’s unemployment rate declining to 5.3 percent in the fourth quarter of this year. Additionally, employment growth will increase by 2.1 percent.

“I expect to see a pickup in activity in the year,” said Mekael Teshome, a PNC Bank economist.

The region has been growing at a moderate rate for the past two years due to strong auto sales and increasing demand in the health care industry.

About 18 percent of the Youngstown metro area’s population is 65 and older, which benefits the health care industry.

The median household income in Northeast Ohio would also increase to $54,300.

Manufacturing and energy-related industries give the regional economy a boost by increasing work hours and production, according to the outlook.

Although the housing market is reinforced by high affordability and low mortgage rates, the outlook states that Northeast Ohio won’t be able to take advantage of it without “greater economic vitality.”

The outlook states that activity in the Utica Shale is tied to the region’s economy. Energy prices that have declined since June have created uncertainty for the region’s economy in 2015.

Gas extraction, however, could help solve a long-term issue in the region, which is declining in population.

Teshome said the lower price of oil is a net positive as it helps consumers but potentially can hurt exploration and production in the Utica Shale.