THE VIRGINIAN-PILOT
Copyright (c) 1997, Landmark Communications, Inc.
DATE: Thursday, February 20, 1997 TAG: 9702200095
SECTION: BUSINESS PAGE: D2 EDITION: FINAL
SOURCE: BY LON WAGNER, STAFF WRITER
LENGTH: 31 lines
The Hampton Roads economy stumbled throughout 1996 but gained its balance and gathered some momentum toward the end of the year, according to an economic report released Wednesday.
The region's economy grew in December at an annualized rate of 3.8 percent, marking the fourth consecutive monthly increase, according to the Hampton Roads Economic Performance Index.
Despite that improvement, at the end of 1996 the index stood only half a point above the 104.8 mark, where it ended 1995. The economic performance index is measured on a 100 point baseline established from 1991-1993.
``While the year ended on a positive note . . . , 1996 will likely wind up as having recorded the weakest performance of the Hampton Roads economy in the past five years,'' said David Garraty, a Virginia Wesleyan College economics professor who publishes the index.
The main thrust for the region's economy in December was a 17.2 percent growth rate - annually adjusted - in finance, insurance and real estate jobs. Construction grew at an annual rate of 11.3 percent and service sector jobs grew at 8.7 percent.
Garraty attributed much of the improvement in the index to job creation in the service sector, which accounts for about three in 10 of the region's jobs.
``Throughout the '80s and much of the '90s services just grew,'' he said. ``It sagged in 1996, but revived the last couple of months. . . . If that continues, there's hope for a good year.''