Home Economy Economic Activity Lardaro: R.I. economy shows signs of slowing

Lardaro: R.I. economy shows signs of slowing

By

PBN Staff

-

09/16/2024

Lardaro (1) — STRENGTH REMAINED in critical parts of Rhode Island’s economy in July, even though there was evidence of slowing in some areas, University of Rhode Island economist and professor Leonard Lardaro said Monday in his monthly Current Conditions Index report. / PBN FILE PHOTO/MICHAEL SALERNO

PROVIDENCE – Strength remains in critical parts of Rhode Island’s economy but also evidence of slowing, University of Rhode Island economist and professor Leonard Lardaro said Monday in his monthly Current Conditions Index report. The index that Lardaro publishes each month had an expansion value of 67 in July, down from 83 in June. A

Already a Subscriber? Log in

To Continue Reading This Article

Become a Providence Business News subscriber and get immediate access to all of our premier content and much more.

Learn More and Become a Subscriber

Critical RI business news and analysis updated daily.
1 year of print (26 issues).
Unlimited access to all subscriber only content on our website, on any device.
Free email alerts.
Annual Book of Lists Print Edition.
All special issues produced during subscription term.

Click Here to purchase a paywall bypass link for this article

PBN Branded Content

How the Fastest Growing and Most Innovative Companies Utilize Technology for Their Success

As the Managing Director of RIHub, Rhode Island’s Innovation Hub, I have the privilege of…

Learn More

No posts to display

LEAVE A REPLY Cancel reply

PROVIDENCE – Strength remains in critical parts of Rhode Island’s economy but also evidence of slowing, University of Rhode Island economist and professor Leonard Lardaro said Monday in his monthly Current Conditions Index report. The index that Lardaro publishes each month had an expansion value of 67 in July, down from 83 in June. A CCI value above 50 indicates an economic expansion while a value below 50 indicates economic contraction. Lardaro said the July value was still higher year over year, sustaining the yearly string of growth since April. However, unlike June, where all five of the leading indicators improved for the first time in quite a while, only three improved in July, and all three faced fairly easy comparisons from a year ago, he added. “I do not believe that this signals we have returned to ‘first gear,’ it is too early for that,” Lardaro said. “But this slowing is consistent with the moderating pace of national economic activity.” Eight of the 12 CCI indicators improved relative to their value year over year in July. Government employment grew 3.4%. Private service-producing employment saw its growth accelerate to 1.4% while single-use permits rose for the fifth time in six months. Retail sales, which Lardaro says is a key indicator of Rhode Island’s economic health, rose by a rapid 5% year over year. Labor Force participation continued its climb since December 2023, rising above 65% since May 2015. Manufacturing hours rose 8% in July, however, manufacturing wages slowed 3.1% that month, close to the rate of inflation. New claims turned negative in July after a one-month improvement. Lardaro attributed this drop to slowing employment service jobs, which has only improved five times since July 2023. Benefit exhaustions in July continued a double-digit upswing since April 2023. Year-over-year CCI indicators in July:

Employment service jobs increased by 0.9%.

Government employment increased by 3.4%.

Labor force increased by 3.3%.

Manufacturing hours increased by 8%.

Manufacturing wages increased by 3.1%.

New unemployment claims decreased by 19.5%.

Private service-producing employment increased by 1.4%.

Retail sales increased by 5%.

Single-unit permits increased by 2%.

Unemployment benefit exhaustions increased by 20%.

Unemployment rate increased 1.7%.

U.S. consumer sentiment decreased by 7.2%.