Utah had the sixth strongest economy in the nation during the second quarter of this year, based on a strong showing in employment growth and home sales and a decrease in mortgage foreclosures, according to a new national ranking released Wednesday by Kemper Securities Inc.Kemper's ranking was based on five criteria it compared in the second quarter 1992 with the same period in 1991. Utah was ranked first in the nation for home sales with a 28.24 percent increase; fifth for a 1.90 percent growth in employment; and sixth in reduced foreclosures with a 36.84 percent decrease.
Unemployment was up 4.17 percent and mortgage delinquencies were down 21 percent, according to the survey. No Utah ranking was given in those categories since the state was not in the top or bottom 10.
"You (Utah) scored high in three out of the five, that's what kept you into the top 10," said Brad Langs, a Kemper analyst in a phone interview.
Kansas and Alaska were newcomers to Kemper's top 10. Kansas had strong results in four of the five categories measured for the study. Alaska made it into the top 10 on the basis of declines in mortgage delinquencies and foreclosures and "solid growth" in employment.
The other eight states in the top 10 also appeared on Kemper's first-quarter rankings. The top 10, in order of ranking, are 1. Montana, 2. Kansas, 3. New Mexico, 4. Wyoming, 5. North Dakota, 6. Utah, 7. Idaho, 8. South Dakota, 9. Colorado and 10. Alaska.
The state rankings are based on a point scale with five economic indicators equally weighted: employment, home sales, mortgage delinquencies, mortgage foreclosures and unemployment. Maximum points possible are a +100 score and worst is a -100 score.
Top ranked Montana received +62 points. Bottom listed Connecticut scored -84 points. Utah received +51 points. The bottom 10, from 51st place (the rankings include the District of Columbia) up, are: 51. Connecticut, 50. New Jersey, 49. New York, 48. California, 47. Delaware, 46. Rhode Island, 45. Maryland, 44. District of Columbia, 43. Nebraska, 42. Hawaii.
The study is designed to help investors evaluate municipal, corporate and structured finance bonds, Langs said.
Over the past 18 months, the study has logged solid performance from the West/Central Region, said Langs. A strong showing has also been observed from several Midwestern states."
States on the East and West coasts were totaled nine of the 10 weakest performers. Maine and West Virginia moved up from the bottom 10 during the second quarter but still remain in the lowest tier. The Midwest states were neither the strongest nor weakest in the five categories measured.
Hawaii joined the list of weakest performers based on increased unemployment and mortgage foreclosures. Langs termed Nebraska a "surprising first time entrant" to the "worst" list due to a big drop in employment and an increase in unemployment. He said Kemper looks for a state to appear two consecutive quarters on the top or bottom lists to confirm that the trend is "more than one-time or seasonal."
He termed the nationwide statistics "mixed," indicating a "modest" overall recovery from recession. Mortgage delinquencies declined and home sales increased nationally, but employment was down, unemployment was up and mortgage foreclosures increased during the quarter.