The Augusta Leading Economic Index (LEI) increased 0.2 percent in February from January. It is 0.9 percent higher than a year ago.
The largest change was seen in initial claims for unemployment insurance, which declined by 65 percent on the month. Initial claims for unemployment insurance often fall in February, but there were just 653 new claims in the Augusta Metropolitan Statistical Area (MSA) in February, the lowest since November 2019. The percentage decline was greater than the state of Georgia as a whole, which saw claims fall by 40 percent.
The other labor market indicator, job openings, also improved in February. Job openings in Georgia increased by 7,000, but fell by 3,000 in South Carolina. The national labor market remains strong, with 228,000 jobs added in March, well above expectations. This good news was lost in the stock market turmoil after the announcement of across-the-board tariffs. The Dow Jones Industrial Average, included in the LEI, fell in February before the tariff announcements.
Other components had positive impacts on the index. Inflation in the south fell to 2.3 percent, and residential building permits increased slightly. Average house prices in the Augusta MSA have increased by 60 percent since the end of the 2020 recession. Good news if you own your home, maybe not so good news if you are looking to buy.
The Federal Reserve Bank of Atlanta’s home ownership affordability monitor indicates that housing in the MSA is not affordable, meaning the annual cost of home ownership is above 30 percent of the annual median household income. Overall, in the Augusta MSA, home ownership costs are 34 percent of median household income, but affordability varies across the region. The only county with affordable housing is Columbia County, and Edgefield County is the least affordable.
| County | Homeownership costs as % median income |
| Burke | 38.4 |
| Columbia | 23.4 |
| Lincoln | 36.6 |
| McDuffie | 35.4 |
| Richmond | 32.7 |
| Aiken | 32.9 |
| Edgefield | 39.1 |
