THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Friday, July 29, 1994 TAG: 9407290508
SECTION: BUSINESS PAGE: D01 EDITION: FINAL
SOURCE: By PHIL MURRAY, STAFF WRITER
LENGTH: Short : 46 lines
The Hampton Roads economy stumbled in June as employment growth in construction - a major driving force locally - began to slow, a regional economist said Thursday.
It was the second straight month that the area's economic activity declined as measured by an index based on seasonally adjusted employment growth and average wages.
But David G. Garraty, a professor of economics and management at Virginia Wesleyan College who compiles the index, said it's not time to panic. He expects a rebound in the midsummer from a strong tourist season.
``From a larger perspective, it's still in line with our recovery,'' Garraty said. ``You don't want to get too upset with one or two months.''
In June, the index stood 1.3 percent above its year-earlier level. Garraty blamed June's drop on seasonally adjusted declines in manufacturing and construction jobs.
Most of the manufacturing loss came from layoffs at shipyards. Rising interest rates, which makes homes more expensive, were the culprits in construction.
Some of the slack, however, was picked up by retail trade and other tourism-sensitive sectors.
A similar index Garraty compiles for statewide economic activity also tapered off in June for the second straight month. Slowdowns in manufacturing and construction were factors at the state level as well. ILLUSTRATION: Staff graphic
Hampton Roads Economic Index
Source: David G. Garraty, Virginia Wesleyan College
For copy of graphic, see microfilm
KEYWORDS: ECONOMY
by CNB