THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Wednesday, February 8, 1995 TAG: 9502080455
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY MYLENE MANGALINDAN, STAFF WRITER
LENGTH: Short : 48 lines
Strong economic activity in December topped off a year of moderate growth for the region, according to a local economic index released Tuesday.
The transportation, utilities and communications industries led the Hampton Roads Economic Performance Index, which rose to 108.2 in December last year, up from 107.5 in November 1994.
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 1989 to 1991.
Although December's reading was 3.4 percent higher than a year ago, the region only experienced moderate economic growth of 1.6 percent overall in 1994. The services sector, where most of the employment growth occurred, did not pay highly on average, said David G. Garraty, a professor at Virginia Wesleyan College, which administers the index.
Hampton Roads still lags behindVirginia and the nation.
Virginia's economy grew at 3 percent in 1994, almost double Hampton Roads' growth. Gains in finance, insurance, real estate and construction fueled the state economic performance index, which rose slightly to 106.8 in December 1994. It was 106.7 in November 1994.
Construction, services, finance, insurance and real estate contributed to the economy's upward climb in the second half of the year, Garraty said.
``We're a microcosm of what's happening nationally,'' he said.
Despite the positive figures from the end of 1994, Hampton Roads has showed signs of slowing down already.
Residential building has declined, and mortgage rates have crept up steadily. With the Federal Reserve's seven short-term interest rate hikes in 12 months, Hampton Roads will have difficulty sustaining its growth, Garraty predicted. ILLUSTRATION: Graphic
STAFF
ECONOMIC PERFORMANCE INDEX
Hampton Roads
SOURCE: David G. Garraty, Virginia Wesleyan College
[For complete graphic, please see microfilm]
by CNB