THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Friday, November 11, 1994 TAG: 9411110629
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY MYLENE MANGALINDAN, STAFF WRITER
LENGTH: Short : 39 lines
Hampton Roads' economy continued to strengthen in September as the number of service jobs grew and construction increased, according to a local economist Thursday.
Employment gains across a broad base of areas including manufacturing, finance, insurance, real estate and retail produced the improved economic activity, said David G. Garraty, a professor of economics and management at Virginia Wesleyan College.
``We're still growing despite the (defense) downsizing,'' he said. ``That's encouraging.''
As a result, the Hampton Roads Economic Performance Index rose 5.5 percent in September to 105.5, which equals the high set in April, Garraty said. The index, which uses seasonally adjusted job figures and average wage data to measure local economic activity, works from a baseline of 100, representing an average from 1989 to 1991.
The local economy, improved since 1992, is still in a recovery mode, Garraty said.
Growing at a 2.4 percent rate, Hampton Roads continues to lag behind state and national growth rates because of the lingering effect of defense downsizing. Virginia grew at a 4.1 percent annual rate during the third quarter and the nation improved at a 3.4 percent rate.
Virginia mirrored employment gains in the same areas as Hampton Roads.
Garraty and other economists expect rising interest rates and the national economy to slow construction and manufacturing activity in the next six to 12 months.
KEYWORDS: ECONOMY by CNB