THE VIRGINIAN-PILOT
Copyright (c) 1997, Landmark Communications, Inc.
DATE: Thursday, January 16, 1997 TAG: 9701160295
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY MYLENE MANGALINDAN, STAFF WRITER
LENGTH: 37 lines
Additional troops arriving at Oceana Naval Air Station, stable interest rates, decelerating defense cuts and faster population growth will help Hampton Roads grow moderately in 1997, the chief economist of the Hampton Roads Planning District Commission predicted Wednesday.
Hampton Roads usually mirrors national forecasts, slated for moderate growth this year, said John Whaley, director of economic services.
Whaley expects the area's employment to grow 1.2 percent, while the unemployment rate will remain around 4.5 percent. Hotel receipts should increase 2.1 percent, retail sales and residential construction should increase 1 percent, car sales will improve 1.1 percent whereas home sales will move an anemic 0.8 percent.
The growth in 1997 will appear substantial compared to the economy in 1996, which was a ``disappointing year'' in Hampton Roads, Whaley said.
Regional employment declined last year, reflected in fewer company employees and fewer working household members. Most jobs were lost through layoffs.
Hampton Roads' labor force, uncharacteristically, has been shrinking, Whaley said. The region's population grew slowly in 1996 and a loss of high-paying jobs, mostly manufacturing and federal civilian positions, also hurt the area.
Bankruptcies rose and incomes declined last year. Consumers spent less money on cars and houses, and residential building permits were flat, Whaley said.
The one bright spot last year was tourism, which registered higher lodging receipts, he said.
``We think we can look forward to a considerably better economy in 1997 than 1996,'' Whaley said.
KEYWORDS: ECONOMY FORECAST