CHARTER BANK ECONOMIC BAROMETER CONTINUES TO POINT TO RECOVERY
Bellevue, WA - June 23, 2004
The King County region continues to show strong signs of economic recovery based on the figures reported in the Quarter 1 2004 Charter Bank Economic Barometer, Charter Bank Executive Vice President and Chief Lending Officer Terry Peterson reported today. The barometer value of 100.68 represents the fifth consecutive quarterly increase.
Peterson said that the Barometer's continued increase can be attributed to continued rates of positive change in several key indicators. There is sustained improvement in the rate of job growth, in Northwest and U.S. stock values, in retail sales, and in B&O taxes in Seattle and Bellevue. New business formations were up, as well.
"The predictive nature of the Charter Bank Economic Barometer forecasted a technology boom that peaked in 1997 followed by a corresponding correction," Peterson said. The data also support a second correction of King County's basic industries that began in late 2001.
He added, "Our local economy boomed stronger than the rest of the country and our bust or correction has been longer and deeper as well, as we continue to lag the national recovery. We have now digested both a technology bubble and a basic industry correction. With that perspective, our local economy is poised for a solid build out as both sectors are positioned for recovery. We are on the leading edge of a very exciting business cycle. If history repeats itself, this should be the beginning of a five to six year period of local economic prosperity."
Peterson said that the barometer is based on percentage growth in key variables rather than the actual values of those variables which grow over time. As such, the Barometer can provide "apples to apples" comparisons of overall economic health in one period of time versus another.
Charter Bank has been collaborating with Hebert Research since 2000 to monitor and report quarterly economic trends as a means of helping their clients ride the waves of the local economy. Charter Bank is a locally owned community bank serving family owned businesses and professionals.
The Barometer is calibrated so that the first quarter of 1992 is equal to 100. The year 1992 was selected as a baseline because it marked the end of the rapid cooling off period following the late '80's boom, and the start of a five-year period of economic recovery.
At its peak, the boom of the late 1980's hit 104.7 in the 1st quarter of 1990, before plunging down to a low of 99.3 in the 2nd quarter of 1993. The 1990's boom peaked at a virtually identical level of 104.4 in 3rd quarter of 1997, which was followed by a sustained correction that continued until the end of 2002.
In the 1st quarter of 2001, the Barometer descended below the 100.0 baseline level to 99.7. It then fell to a low of 95.51 in the 3rd Quarter of 2002, and has been steadily improving since then.
Charter Bank is a community bank for family-owned businesses, high net worth individuals, and professionals throughout Greater King County with offices in Bellevue, Redmond, Kent, and Downtown Seattle. At Charter Bank, clients enjoy friendly, professional, and detailed service from experienced account officers with local market knowledge. They also benefit from quick turnaround on important decisions and transactions and 24/7 access to online banking. Employees of Charter Bank are shareholders and are committed to the financial success of the organization. For more information, visit www.charterbankwa.com.
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