1. Benson Economic Outlook 2012

2. GROSS DOMESTIC PRODUCT Seasonally Adjusted Annual Rate

3. INFLATION (CPI) Compared to same month previous year

4. NATIONAL OUTLOOK Continued slow economic growth Labor market generally improving Short- and long-run inflation threat remains

5. GDP BY STATE

6. THE LOCAL ECONOMY Cochise County & Benson

7. COCHISE COUNTY RETAIL SALES GROWTH Inflation adjusted; compared to same month previous year

8. BENSON RETAIL SALES TAX REVENUE GROWTH Compared to same month previous year; unadjusted

9. Cochise County 2012: 1.3% * 2011: -1.2% 2010: -4.8% 2009: -4.2% 2008: -6.5% 2007: -1.3% Benson (Retail Sales Tax Revenue) 2012: -2.4% * 2011: -5.6% 2010: -0.4% 2009: -4.8% 2008: 0.6% 2007: 38.2% RETAIL SALES RECENT ACTIVITY * Jan-Apr only; comparison to same period the previous year

10. RESTAURANT AND BAR SALES GROWTH Inflation adjusted; compared to same month previous year

11. Cochise County 2012: -3.3% * 2011: -0.2% 2010: 0.0% 2009: 0.3% 2008: 0.2% 2007: 0.1% Benson 2012: -9.6% * 2011: -11.1% 2010: -3.7% 2009: 9.1% 2008: -0.6% 2007: -3.1% RESTAURANT & BAR SALES RECENT ACTIVITY * Jan-Apr only; comparison to same period the previous year

12. ACCOMMODATION SALES GROWTH Inflation adjusted; compared to same month previous year

13. Cochise County 2012: -11.0% * 2011: -13.1% 2010: 8.3% 2009: -9.0% 2008: 1.0% 2007: 19.7% Benson 2012: -25.6% * 2011: -6.1% 2010: 1.0% 2009: -5.5% 2008: -7.5% 2007: 17.6% ACCOMMODATION SALES RECENT ACTIVITY * Jan-Apr only; comparison to same period the previous year

14. SALES OUTLOOK Modest retail sales growth (countywide); slight decline (city) Restaurant and bar and accommodation sales trending downward (city & countywide) I-10 construction, gas prices, and potential defense cuts

15. EMPLOYMENT

16. UNEMPLOYMENT RATES * Jan-May only; seasonally adjusted

17. MONTHLY UNEMPLOYMENT RATES Seasonally adjusted

18. COCHISE COUNTY NONFARM JOB GROWTH Compared to same month previous year

19. COCHISE COUNTY JOB GAINS/LOSSES BY INDUSTRY 12 months ended May 2012 * Includes mining

20. COCHISE COUNTY JOB GROWTH RATE BY INDUSTRY 12 months ended May 2012 * Includes mining

21. EMPLOYMENT OUTLOOK Local labor market generally improving Sustained improvement likely through 2012- 2013

22. HOUSING AND REAL ESTATE

23. NEW HOME CONSTRUCTION Single Family Residential Building Permits

24. MLS HOME SALES

25. MEDIAN HOME PRICE * 1 st Quarter only

26. OUTLOOK New residential construction picking up countywide Benson new construction down, but above historical levels (pre-2006) Boost from foreclosures/lower prices/lower interest rates 2012 median price likely to increase from 1 st quarter

27. CONCLUSION Moving in the right direction, but slowly Sales locally continue to struggle, especially hospitality Defense spending and I-10 construction Labor market improvement will give boost Construction and home sales picking up Long-term inflation threat