R.I. economy plunges in August, CCI shows

KINGSTON – August was “difficult” for Rhode Island and the nation, University of Rhode Island Prof. Leonard Lardaro wrote in his monthly report on the state of the Ocean State economy.
“Nationally, overall economic activity that had been fairly good in July clearly deteriorated in August. That wasn’t the case here.” In Rhode Island, July was “mediocre,” Lardaro wrote, with the state Current Conditions Index settling at a neutral 50 points, while August was “horrible,” with the CCI plunging 17 points to match the July 2006 score of 33 points. (The last time the CCI fell below 33 points was in April 2001, when it plummeted to 17.)
Declines in the housing and retail markets were partially offset by a mixed performance in the labor market. “Very few positive things … can be said about Rhode Island’s August performance,” Lardaro wrote, adding that the bottom line is, “the trend promises to be highly unfriendly to Rhode Island for the remainder of this year.” •