RI Economy Continues Its Recovery
Monday, November 15, 2010
The state economy continued to stay on its course of recovery for the fourth month in a row, according to University of Rhode Island economist Leonard Lardaro.
Lardaro’s Current Conditions Index—a measure of economic health on a scale of 1 to 100—pegged the state economy at 58 in September, the month with the latest available data. Readings below 50 indicate an economy in recession while figures above 50 signify an economy that is growing. September was the fourth month in a row that the Index was at 58. The Index is based on a dozen factors—from the unemployment rate to how many new building permits have been issued.
Lardaro is optimistic about where the economy is headed. “The fact that this value was sustained in spite of declines in two indictors that had led the way into recovery is encouraging, as is recent national economic momentum,” he said. “At this point, let’s hope that this momentum can be sustained, especially as the next fiscal year approaches.”
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTBig jump from September 2009
To give some perspective on how far Rhode Island has come, at the same time last year, the economy registered at 33 on the Index—and it was still at 33 this past January.
The two indicators that saw a decline in September were retail sales and U.S. consumer sentiment. The fact that the Index remained at 58 is a “very positive sign,” according to Lardaro.
“Declines like this are not uncommon for indicators that have improved consecutively for many months,” Lardaro added. “This most likely reflects a ‘pause’ for both indicators, as their uptrends remain intact at this point. Improving economic momentum at the national level should benefit both of these in the coming months.”
And the situation is even better than the Index of 58 might indicate. Lardaro noted that 11 of the 12 indicators he uses to calculate the Index either improved or were close to improving on a monthly basis. “Once again, strength in our state’s manufacturing sector led the way, as its rebound continued,” he said.
Economic Indicators: The List
Below is the list of economic indicators used in the Current Conditions Index and the percent change they saw in September. A “Y” next to an indicator shows that it improved.
Related Articles
- Langevin Releases Major Report on Economy
- Loughlin Says Tax Cuts, Not Stimulus Spending, Will Help Economy
- Providence Mayoral Candidates Share Their Views on the Arts and the Economy – Part 1, Jobs
- ‘Light at the end of the tunnel’ for RI’s economy
- Providence Mayoral Candidates Share Their Views on the Arts and the Economy – Part 2, Top Priority
- Are There Signs of Life in the Rhode Island Economy?
- RI Economy Now In Recovery
- Gubernatorial Candidates Share Their Views on the Arts and the Economy – Part 1, Jobs
- Where Is RI’s Economy Headed?
- INNOVATION: Can a college in South Providence fuel the economy?
- Korean Ambassador: Free Trade Will Benefit RI’s Economy
