NEW: Bryant Study Shows RI Outgrew US
Tuesday, August 09, 2011
The Rhode Island economy is expanding at a faster rate than the national economy, according to a just-released report by the Rhode Island Current Economic Indicator (RI CEI). The report, developed by economists at Bryant University, shows significant economic growth in the state over the second quarter.
While economic growth throughout the state ground nearly to a halt in the first two quarters of 2011, the briefing indicates that there has been a significant increase in consumption throughout the state—compared with the first quarter, general sales and gross receipt taxes grew 3.4 percent.
Unemployment
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTThe report also cites a slightly improved numbers for the labor market, as initial unemployment claims decreased 8 and 7.5 percent, over the first and second quarters, respectively.
Some sectors of the Rhode Island economy also saw increased employment: trade, transportation and utilities services added 8.4 percent to their work forces. The hospitality industry also showed better employment numbers after a difficult first quarter.
Additionally, the Rhode Island Leading Economic Indicator projects a modest 2.2 percent expansion in the state’s economy over the next two quarters.
National News
Any positive economic news must be tempered by the darkening national economic picture. The recent S&P downgrade of the United State’s credit rating, coupled with the major recent losses in the stock market, have some questioning whether or not the country may be headed for a second recession.
John Simmons, the executive director of the Rhode Island Public Expenditure Council, said “If the U.S. economy fails to pick up steam soon, the already slow economic recovery will be derailed.” And unfortunately, Rhode Island is still not creating enough jobs to see any significant improvement in its unemployment numbers. The bankruptcy of Central Falls and the recent Moody’s downgrade of West Warkwick’s bond rating may further complicate Rhode Island’s economic recovery.
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