1. Sam M. Walton College of Business at the University of Arkansas Welcome to the Quarterly Business Analysis Breakfast! July 10, 2009

2. Sam M. Walton College of Business at the University of Arkansas Bad News—Just this week… “Delinquencies rise on consumer loans as job losses mount” “Job openings stuck at record low” “Luxury spending predicted to fall 10%.”

3. Sam M. Walton College of Business at the University of Arkansas Good News Improved lending environment Stock market recovery Rising consumer confidence Drop in initial job claims Growing gap between rising new orders and depleted inventory levels

4. Sam M. Walton College of Business at the University of Arkansas More Good News Fiscal stimulus Monetary stimulus

5. Sam M. Walton College of Business at the University of Arkansas

6. What will be the shape of this recession? V, U, L, W

7. Sam M. Walton College of Business at the University of Arkansas

36. Skyline Report Highlights Building permits remain very low. Absorption is way down. There are under 1,000 complete, but unoccupieds. Average prices have declined between 12.8 and 19.5 percent. There are 1.5 million sf of available office space, 1.0 million sf of available retail, and another 938,000 sf of available office/retail space.

37. Sam M. Walton College of Business at the University of Arkansas

38. Thank you! Be watching for exciting announcements about the Arkansas economic outlook. Comments or questions are welcome!