BILLINGS - Some Billings business owners say the tough economic times are reaching the Magic City.

Local businesses were showcased Thursday at the annual Chamber of Commerce meeting and the economy was a hot topic. Local builders say the sale of homes in the $200,000-to-$400,000 range has slowed considerably.

They say the reduced number of building permits is a good indicator of the slowdown. "The homes sales are definitely down. Building permits wise we're down well over 50% less building permits at this point this year then we were last year," said Comfort Heating and Air Conditioning's Jeff Scherr.

Business owners say the travel and tourism industry has also suffered, but they believe the Billings economy remains relatively stable compared to other parts of the country.