BOONE—Western North Carolina’s economy made positive strides in May, increasing 0.5 percent for the month, a gain that followed a 0.6 percent increase in April.

This marks the first time the region has had back-to-back positive gains since December 2006, according to information in the Western North Carolina Economic Index compiled at Appalachian State University.

“The indicators are mixed, but it is heartening that we had two consecutive months of growth for the first time since 2006,” said Todd Cherry coauthor of the report. Cherry also is the Harlan E. Boyles Professor in Appalachian’s Walker College of Business and a Faculty Fellow at the Institute of Emerging Issues at N.C. State University.  “While the region appears to be recovering from the economic stumble from the start of the year, there is still a lot of catching up needed to fully recover from recent declines.”

Seasonally adjusted employment for the region grew little, increasing only 0.06 percent in May. “We had modest job growth, but we are still below the job numbers from December 2006,” Cherry said.

Statewide employment decreased 0.1 percent for the month. Regional employment has decreased 0.99 percent since January.

Looking at the 25-county region, job losses were concentrated in the central foothill counties of Alexander, Burke, Caldwell, Catawba and McDowell counties, all of which continue to experience erosion in the manufacturing sector; and the southwestern counties of Jackson, Macon and Transylvania.

Unemployment fell across the region in May. The seasonally adjusted unemployment rate fell 0.1 percentage points to 5.0, while the state unemployment rate remained unchanged at 4.5 percent.

Within the region’s rural counties, the seasonally adjusted unemployment rate remained at 5.4 percent while unemployment in the Asheville area increased 0.1 points to 3.7 percent. Unemployment decreased 0.3 points to 6.0 percent in the Hickory-Morganton-Lenoir area.

County-level seasonally adjusted unemployment rates increased in 16 of the 25 WNC counties in May.  Alleghany, Wilkes and Graham counties experienced the largest increases in unemployment rates while Caldwell, Cherokee and Mitchell counties had the biggest declines.

Watauga, Henderson and Buncombe counties had the lowest unemployment rates in May while Graham, Mitchell and Caldwell counties had the highest rates.

Seasonally adjusted initial claims for unemployment insurance in the region, a leading indicator of unemployment, fell 2.6 percent in May. Initial claims increased 20.5 percent in Asheville and increased 19.7 percent in Hickory-Morganton-Lenoir.

The Western North Carolina Index and Report provides a monthly account of economic conditions for Western North Carolina. It typically is released the fifth week following each month.

The report is compiled and written by Cherry, John W. Dawson from the Department of Economics, and Richard Crepeau from the Department of Geography and Planning. The index and report is a cooperative effort by AdvantageWest North Carolina, and Appalachian’s Walker College of Business.

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