CCI reports sluggish Rhode Island economy in 3Q 2007

KINGSTON – Rhode Island’s economy “slowed considerably” in the third quarter of 2007 despite growth nationally, a report issued by a University of Rhode Island professor said last week.
Prof. Leonard Lardaro’s Current Conditions Index, an analysis that tracks a broad array of economic indicators in the state, said that Rhode Island’s economic health declined in several areas, including employment service jobs, total manufacturing hours, retail sales and government employment in employment.
Several areas of the economy did improve, Lardaro said: Private service-producing employment, manufacturing wage, unemployment rate and single-unit construction permits all saw increases from the third quarter of 2006. However, Lardaro noted that the single-unit permit figure was more a reflection of an extremely week 2006 quarter rather than a bustling market this year.
With all factors considered, Lardaro’s index saw the state’s economy drop from July’s 50 – a neutral value – to a 33 in August, with a slight rise to 42 in September.
“I always attempt to determine if there might be extenuating circumstances behind seemingly weak performances,” Lardaro said. “Sadly, almost nothing positive can be said about Rhode Island’s September performance.”