Dana Johnson Effects Quotations

I expected our index to tick lower in March, as the effects from the Super Bowl and mild winter weather faded. Looking ahead, our index probably will settle into a lower range, as the local economy struggles to overcome restructuring in the auto sector, higher interest rates, and elevated gasoline prices.

That probably overstates the impact, just think of the army of people pouring into that region, and you see people spreading out across the country and getting jobs; it won't continue, I don't think those bottlenecks and shortages will continue. The broader concern is we have crude oil over $60 a barrel, which is the price even before Katrina was named, and that will have long-term effects on the economy, and I think that's a distinction that should be made.

So far, I am encouraged to see how well the regional economy has weathered the job and income losses centered in the auto manufacturing sector. Mild winter weather and the Super Bowl no doubt helped to support the economy early in 2006. As those effects fade, I would expect to see some fall off in activity over the next several months.