Oct. 12--The Bryan-College Station economy remains strong, even as national and global indicators point to a broader recession, economists said.

The metropolitan area had the state's second-highest 12-month job growth rate through August at 3.9 percent and has seen a 5.3 percent increase in retail spending this year, according to data provided by an economist who studies the area.

Home construction dropped more than 15 percent through August, but housing prices have grown by 1.5 percent and home sales appear to be steady, with 0.4 percent growth this year. August is the most recent month for which such figures are available.

"Given all the bad news all the time, that is a very solid outcome for our local metropolitan area economy," said Karr Ingham, an Amarillo-based economist who provides a monthly report on the Bryan-College Station economy.

Ingham said the continued local growth was surprising because he had expected the nationwide economic struggles to affect the area. Texas has continued to thrive through the downturn, however, as have most of its cities, he said.

Economists and area leaders said they did not expect the recent turmoil to have a drastic effect on Bryan-College Station. The area might experience a slowdown, Ingham said, but probably not nearly to the same extent as other parts of the country.

"We have never been a market noted for wild swings -- big ups or big downs," said Jim Gaines, a researcher for Texas A&M's Real Estate Center. "When you avoid the big swings, it is easier to maintain the growth and prosperity."

Brazos County did not see home values skyrocket as they did in other parts of the country earlier in the decade, Gaines said. They grew steadily instead of swelling into a bubble that would inevitably burst.

"A lot of people living here were probably envious of the boom communities when those prices were going up," Gaines said. "Well, now look at what is going on. We haven't had the big up or the big down, and most people are a lot more comfortable with that."

A major reason that the community is not susceptible to major market swings is Texas A&M University -- a growing public institution that isn't as affected by the markets, experts said.

A&M is by far the top employer in the area -- it employs eight times more people than the second-largest job provider -- and five of the other top 10 job providers are also government-funded, according to the Real Estate Center. Many of the remaining jobs are in the retail and service industries that cater largely to students and university staffers.

Texas A&M's growth comes from state resources and is not as susceptible to economic changes as private business are, experts said, though a decrease in state tax revenue could affect the university.

"It is probably true that the state is looking at lower revenues because of problems hitting the whole world, so universities' budgets might not increase as much as they have in the past," Gaines said. "Next year is probably going to be a tough year for everybody, but I suspect that the impact will not be as pronounced here as it is in other parts of the country. I would be surprised if we really feel it much at all."

Local small-business owners appear to have the same outlook, said Royce Hickman, president and chief executive of the Bryan-College Station Chamber of Commerce.

"Business here seems to me to be strong and healthy, although we are entering a period where there seems to be a little caution," Hickman said.

He said that some businesses might be concerned with difficulties getting loans because of the current credit crunch and that some might be waiting to expand until after the turmoil has passed.

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