According to Joseph Von Nessen, Ph.D., a research economist at the University of South Carolina’s Darla Moore School of Business, South Carolina’s economy is stabilizing after years of pandemic-driven turbulence. His insights were featured Dec. 5 at the “Economic Insights Brunch: Preparing for What’s Ahead,” hosted by the Berkeley County Chamber of Commerce.
The event, at the South Carolina Aeronautical Training Center in North Charleston, provided local business leaders with tools to navigate a rapidly changing economic landscape. Von Nessen delivered an in-depth analysis of economic trends and challenges, including the potential impacts of an International Longshoremen’s Association (ILA) strike on industries, supply chains and the overall economic environment.
“This program offered a comprehensive overview of the key factors shaping our local economy,” said Elaine Morgan, CEO of the Berkeley County Chamber of Commerce. “It was designed to help businesses understand the opportunities and challenges ahead across all industries. Ensuring your business is prepared for what’s coming is more important than ever.”
Von Nessen, who grades the state’s economy as a “B+,” described South Carolina’s transition into a “Great Readjustment” following pandemic-driven imbalances.
“Following the pandemic, we saw a significant imbalance between supply and demand emerge,” he said. “Now, we are readjusting back to an equilibrium, with much of the durable goods bubble deflating back to long-run trends.”
Housing and manufacturing sectors, which were heavily impacted during the pandemic, are beginning to stabilize.
“The housing market saw a spike in sales activity in 2021, followed by a pullback as the Federal Reserve raised rates in 2022,” he said. “But 2024 has brought stabilization, with more sustainable growth expected ahead.”
Despite this progress, concerns remain. Unemployment rose from 3% in January to 4.7% in October, and there’s a 50/50 chance of inflation rebounding in 2025.