ARIZONA NEWS

Expert says Arizona economy is poised to soar as inflation slows, businesses hire

Sep 12, 2024, 4:15 AM | Updated: 7:45 am

Arizona economy...

With inflation slowing, the Arizona economy is in good condition. (Getty Images File Photo)

(Getty Images File Photo)

PHOENIX – With inflation slowing and new businesses ready to hire, the Arizona economy is poised to soar in 2025 and beyond, according to a Valley economist.

“I think we’re going to be the state to be in for those that want to have businesses that are just going to be rocketing out of the downturn,” Jim Rounds, president of Tempe’s Rounds Consulting Group, told KTAR News 92.3 FM on Wednesday.

Rounds spoke after the Bureau of Labor Statistics released its August inflation report.

The data showed annual inflation for metro Phoenix at 2.3%, the area’s second smallest year-over-year consumer price increase since February 2021. In fact, the Valley saw negative inflation over the last two months, with prices falling by 0.3% from June to August.

Nationally, annual inflation was down to 2.5% in August, the smallest year-over-year change since February 2021. As a result, the Federal Reserve is expected to start cutting interest rates soon.

“It’s right about where it should be,” Rounds said. “That means that we’re almost certainly going to see a quarter-percent cut in the key rate, and there’s probably even some pressure to do a little bit more than that.”

The inflation news was released a day after the Census Bureau reported that household income adjusted for inflation has returned to pre-COVID levels.

Why is Arizona economy strong?

Rounds said policymakers learned their lessons during the Great Recession and retooled the Arizona economy. They did so by focusing on economic development and tax policy.

“Arizona did more in those areas than any other state in the country since the great Great Recession,” he said.

The bottom line, Rounds said, is that the Arizona economy is primed for a surge in high-paying jobs.

“We heard the stories about them [businesses] coming to Arizona, and now we’re going to start to see the number of jobs increase because the businesses that landed here have built their facilities and they’re starting to hire,” he said.

That will lead to higher wages across the board, Rounds explained.

“It’s going to lead us into great things for the rest of the decade,” he said.

KTAR News 92.3 FM’s Jim Cross contributed to this report.

We want to hear from you.

Have a story idea or tip? Pass it along to the KTAR News team here.

Arizona News

Karrin Taylor Robson...

Kevin Stone

Karrin Taylor Robson announces 2nd run for governor of Arizona

Karrin Taylor Robson, who unsuccessfully ran for governor of Arizona in 2022, announced Wednesday she is running again in 2026.

1 hour ago

Phoenix police officers shot and killed a suspect near Williams Field and and Higley roads in Gilbe...

KTAR.com

Man killed in overnight shooting involving Phoenix police officers in Gilbert

A man was killed in an overnight shooting involving Phoenix police officers in Gilbert, authorities said Wednesday morning.

2 hours ago

A Scottsdale estate with a Jordan shoe display and a full basketball gym was listed for $23.5 milli...

Kevin Stone

Furnished Scottsdale estate with basketball gym, Jordan sneaker display listed for $23.5M

A basketball lover’s dream home is on the market in north Scottsdale, but you better have plenty of space under your salary cap if you want to buy it.

3 hours ago

Uranium mining...

Kevin Stone

Arizona GOP leader wants Trump administration to remove uranium mining restrictions

Arizona's Republican Senate president is hoping the Trump administration will undo actions by former presidents that curtail uranium mining in the state.

4 hours ago

56 trees growing into power lines to be removed in 2 cities...

Serena O'Sullivan

SRP to remove 56 trees growing too close to power lines in Chandler, Apache Junction

The Salt River Project (SRP) is teaming up with the cities of Chandler and Apache Junction to remove 56 trees growing into power lines.

4 hours ago

Two Arizona Department of Economic Security Employees were convicted of receiving bribes to approv...

David Veenstra

2 state employees convicted of receiving bribes

Two Arizona Department of Economic Security Employees were convicted of receiving bribes to approve unemployment insurance claims.

11 hours ago

Sponsored Articles

...

Bright Wealth Management

How IRAs are a helpful tool in retirement planning

When it comes to retirement planning, individual retirement accounts (IRAs) can be a great tool for income growth.

...

Bright Wealth Management

How to save money on retirement planning following 2024 election

PHOENIX -- With the 2024 election over, economic changes could impact how people plan for retirement as 2025 is on the horizon.

...

The UPS Store

How The UPS Store is giving back to the community

PHOENIX -- As 2024 nears a close, The UPS Store is looking to give back to the Arizona community with the holiday season approaching.

Expert says Arizona economy is poised to soar as inflation slows, businesses hire