Economic news good and bad

What is that fragrant smell in the air? No, not the woodsy smell of Christmas trees and holly. It is the smell of recovery.

Forbes recently published its list of the cities with the fastest recovery from the ravages of the recession. Augusta-Richmond County, including the Aiken area, was tied for No. 22 on that list of the 100 largest Metropolitan Statistical Areas in the country.

That puts this area in a relatively good position as we go forward into 2010.

The ranking of fastest recovering areas was based on each area's gross metropolitan product, its unemployment rank, home price rank, foreclosure rank and home-sales rate rank. That the Aiken-Augusta area is rated so high speaks well of the promise for the future when the country begins climbing out of the present economic situation. The $1.6 billion in Recovery Act funding for Savannah River Site probably helps out the situation here.

The forecast for the rest of South Carolina, however, is not so rosy, according to economists who gathered this week in Columbia to assess the state and its hopes for 2010. Clemson University economist Bruce Yandle said that next year should be no worse than this year for the state's economy. That is hardly a stirring endorsement for prosperity next year.

University of South Carolina economist Doug Woodward was less enthusiastic. He said he was "cautiously pessimistic" for the prospects of next year.

While the local economy might see improvement continuing in 2010, the woes of the rest of the state will be felt here. Until the economy improves, state government revenues will remain low, affecting funding for our schools and local governments. Also impacted will be health, welfare, transportation, roads and even tuition at state-funded institutions.

The rough ride may be easing, but it is still a rough ride and will likely continue well into 2010.