THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Friday, June 9, 1995 TAG: 9506090572
SECTION: BUSINESS PAGE: D2 EDITION: FINAL
SOURCE: BY MYLENE MANGALINDAN, STAFF WRITER
LENGTH: Short : 41 lines
Local economic activity declined for the second consecutive month in April, suggesting that Hampton Roads will experience slower growth this year, a local economist said.
The Hampton Roads Economic Performance Index fell slightly to 105.6 in April from 105.9 in March. David Garraty, an economist and professor at Virginia Wesleyan College who administers the index, reported that economic activity declined at a 2.3 percent annual rate in April.
The index, which uses seasonally adjusted job figures and average wage data, operates from a baseline of 100 that represents the average from 1989 to 1991.
Despite the drop in the index, solid gains were made in wholesale and retail trade, transportation, utilities and communications, finance, insurance, real estate and manufacturing.
Declines in government employment, services, construction and mining offset the gains achieved by the other sectors. The drop in government employment reflects continuing decline in federal payrolls.
``The region's most basic industries, except for tourism, are likely to remain relatively weak for the remainder of the year, resulting in moderate growth for the region, at best,'' Garraty said.
Growth in the commonwealth mimicked Hampton Roads' slowdown.
The Virginia Economic Performance Index rose at a 1.6 percent annual rate through April. It stood at 107.6, or 3.1 percent above its year earlier reading. That's up slightly from its 107.5 reading in March. The state grew in wholesale and retail trade, finance, insurance and real estate, manufacturing, transportation, utilities and communications. Construction and government employment statewide declined. Services employment remained unchanged.
Garraty suggested that Virginia would experience more moderate growth in the upcoming months. by CNB