THE VIRGINIAN-PILOT 
              Copyright (c) 1996, Landmark Communications, Inc.

DATE: Thursday, January 25, 1996             TAG: 9601250437
SECTION: BUSINESS                 PAGE: D3   EDITION: FINAL 
SOURCE: BY MYLENE MANGALINDAN, STAFF WRITER 
                                             LENGTH: Short :   39 lines

HAMPTON ROADS ECONOMY AIDED BY GAINS IN SECOND HALF OF 1995

Thanks to momentum during the second half of the year, 1995 might be the best year of the 1990s for the local economy, according to an economist at Virginia Wesleyan College.

``Unlike the national and state economies, Hampton Roads in 1995 finally experienced levels of growth consistent with economic recovery after five years of minimal economic expansion,'' said David Garraty, a business professor at Virginia Wesleyan College, who administers the region's economic index.

Although the Hampton Roads Economic Performance Index remained unchanged in November at 105.7, on an annual basis it has inched up at an 0.8 percent rate, he said.

Growth in the construction and retail industries led the economic growth last year. Continued growth in those industrial sectors should offset some of the job losses in the manufacturing and federal government employment ranks.

The index is constructed from seasonally adjusted job data weighted by average industry wages and compared with a 1991-93 base period.

The decline in manufacturing jobs, down 17 percent at an annual rate, offset any gains by other job sectors such as finance, insurance, real estate and construction during November.

``This manufacturing weakness continues to act as a drag on the local economy and primarily reflects that negative impact of reduced shipbuilding employment,'' Garraty said.

Virginia's economy improved in November, moving up to a 107.9 reading from 107.7. Widespread job gains in construction, services, financial services and other areas helped boost the state's economy at the end of 1995. by CNB