KINGSTON – Rhode Island’s economy continued to grow in January as the fourth quarter’s momentum carried over into the new year, according to University of Rhode Island economist Leonard Lardaro’s monthly report, released today.
“The recent re-benchmarking of Rhode Island’s labor market data didn’t bring about major changes to the overall levels of the Current Conditions Index last year but it did shift the point at which our momentum picked up from the first to the fourth quarter,” the URI professor noted. “As is so often the case, when the national economy slows, Rhode Island’s economy seems to gain momentum.”
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The CCI for January was 58 points, declining from December’s 67 points but remaining well above the neutral score of 50.
Seven of the 12 indicators improved: Employment service jobs rose 15.0 percent – their fourth consecutive double-digit increase. Private service employment grew 2.3 percent, continuing its 1-percent or better growth since September. The state’s unemployment rate dipped to 4.7 percent from the year-ago 5.2 percent as –more importantly, Lardaro said – last year’s “very high jobless rates … were largely revised down.” And U.S. consumer sentiment grew 6.0 percent, in its fifth straight monthly gain.
On the negative side, Lardaro said, the housing market “continued its roller-coaster ride.” Single-unit permits, a leading indicator for new home construction, fell 8.3 percent in January. Retail sales followed suit, dropping 5.4 percent. “It should be noted, however,” he said, “that the declines in both of these indicators followed atypically strong increases last January.”
The Current Conditions Index, created by Lardaro, measures the strength of the state’s economic climate; values above 50 indicate the economy is expanding. Additional information, including historic data, is available at members.cox.net/lardaro/current.htm.
