THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Friday, July 14, 1995 TAG: 9507140472
SECTION: BUSINESS PAGE: D2 EDITION: FINAL
SOURCE: BY MYLENE MANGALINDAN, STAFF WRITER
LENGTH: Short : 36 lines
Economic activity fell sharply in May, suggesting a weak local economy for the rest of the year, said a Virginia Wesleyan College economist.
May's 7.2 percent annual rate decline was the sharpest drop in the local index since January 1992.
The Hampton Roads Economic Performance Index dropped to 105.2 from April's revised 105.9 reading, reported David G. Garraty, who administers the index.
``The index continues to give us bad news,'' Garraty said. ``But on the other hand, it is one month behind the national indicators. But I'm still pessimistic.''
Widespread weakness in all economic sectors, particularly in government and service employment, which comprise more than half of the region's civilian employment, contributed to the decline in activity.
Over the last three months, the index has moved down steadily at an annual rate of 2.7 percent.
The index is composed from seasonally adjusted job data that's weighted by average wage information.
Virginia's economy slowed down in May as the state index fell to 107 from April's revised reading of 107.5. Transportation, utilities, communications and wholesale and retail trade increased slightly but significant declines appeared in government and construction.
Garraty suggested that state economic activity would remain weak over the upcoming months but would continue to outperform Hampton Roads. by CNB