THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Saturday, August 26, 1995 TAG: 9508260475
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: STAFF REPORT
LENGTH: Short : 43 lines
Economic activity in June remained stagnant in Hampton Roads as manufacturing, construction and government employment continued to decline.
The Hampton Roads Economic Performance Index declined in June to 104.7 from 104.8 in May. The index remains 2.2 percent above its June 1994 level.
The index is compiled from seasonally adjusted job and average wage data to measure local economic activity. It operates from a base line of 100 that represents an average from 1984 to 1994.
Over the past five months, the index declined at a slight 0.9 percent annual rate, which suggests that the region has been hurt by the Federal Reserve's higher interest rates, said David Garraty, a professor at Virginia Wesleyan College who administers the index.
``The decline in manufacturing, construction and government employment highlight what continue to be Hampton Roads' weakest industrial sectors in the 1990s,'' Garraty said.
``With these three pockets of weakness, Hampton Roads has struggled to generate sustained economic growth and finds itself more vulnerable than the national economy to the slowing efforts of the Federal Reserve.''
Virginia's economy also slowed in June, dropping to 107.0 on the state economic performance index from 107.1 in May. Mirroring Hampton Roads, the state economy declined during the first half of the year.
The state showed declines in government, finance, insurance, real estate, transportation, utilities and communications employment.
Although Garraty expected economic activity in the region and the state to pick up, based on recent national data, he also expected Hampton Roads to lag the state and nation. ILLUSTRATION: HAMPTON ROADS ECONOMIC PERFORMANCE INDEX
May 104.8
June 104.7
by CNB