THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Wednesday, September 13, 1995 TAG: 9509130440
SECTION: BUSINESS PAGE: D2 EDITION: FINAL
SOURCE: BY MYLENE MANGALINDAN, STAFF WRITER
LENGTH: Short : 39 lines
Hampton Roads showed that it still has a heartbeat.
Economic activity rose slightly in July for only the second time in the past six months, according to the Hampton Roads Economic Performance Index released Tuesday.
The index, constructed from jobs data weighted by industry wage averages, rose to 104.7 in July. It was 104.6 in June.
The index is created from a baseline of information compiled from 1991-93.
``While the increase is a welcome development, the slight improvement continues to fit a pattern of economic weakness which has developed in Hampton Roads over the last six months,'' said David Garraty, a Virginia Wesleyan College professor who administers the index.
The biggest job gains showed up in transportation, utilities and communications, which increased at a 12.3 percent annual rate, followed by construction and mining, up by 6.6 percent.
Because almost half the seasonally adjusted growth for the month appeared in the relatively low-paying trade and service industries, the index's rise is more modest than employment growth alone would suggest, Garraty said.
Virginia's economy grew slightly in July, too. The state economic performance index rose to 107.2 from 107.1 in June.
July's figures marked the third improvement in the past six months for the state, suggesting that Virginia's economy has remained stagnant as opposed to the slight decline experienced in Hampton Roads over that same period.
Garraty, however, was optimistic that the local and state economies would show improvement because blue-chip indicators called for a return to moderate growth. Since Hampton Roads and Virginia are tied closely to the national economy, he expects those indicators to apply to both regions. by CNB