THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Thursday, October 10, 1996 TAG: 9610100492
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY LON WAGNER, STAFF WRITER
LENGTH: 42 lines
The Hampton Roads economy continued backtracking in August, despite a steadily expanding state economy, according to an economic report released Wednesday.
Though employment in a majority of the region's major industries expanded, jobs decreased substantially in three categories and dragged down the entire economy, Virginia Wesleyan College economics professor David Garraty reported. August is the fourth consecutive month in which Garraty's Hampton Roads Economic Performance Index declined.
The 299 layoffs announced Wednesday at Newport News Shipbuilding - though employment at the shipyard will finish the year 1,000 higher than expected - is just one example of the struggling economy, Garraty said.
``That's just been a hard negative to overcome throughout the '90s,'' he said. ``January was good, but since then there really hasn't been much to crow about.''
Manufacturing jobs like those at the massive shipyard declined in August at an annual rate of 9.7 percent, according to the index. Wholesale and retail trade employment dropped by 11 percent, and finance, insurance and real estate jobs declined by 10.6 percent.
Employment in four sectors gained in August: Construction jobs jumped 9.5 percent, services rose 4.3 percent, utilities and communications were up 3.9 percent and government employment was up 2.7 percent.
Overall, the Hampton Roads index dropped from 104 in July to 103.9 in August. The economic performance index compares the current state of the Hampton
Roads economy with the 1991-1993 average level of 100.
The index for the state has continued to climb this year, from 107.3 in January to 108.7 in August. Garraty points out that the state index has climbed 1.3 percent for the year while Hampton Roads' index has dropped 1.3 percent. Without Hampton Roads, which makes up about 20 percent of the state economy, the Virginia index would be even higher, Garraty said.
``If you take out our downward direction, they'd be up about 2 percent,'' Garraty said of the state. ``That's a nice strong rate that reflects the national economy.'' by CNB