Lardaro: Economy continues to ‘hang in there’

UNIVERSITY OF Rhode Island economist Leonard Lardaro released his latest Current Conditions Index for November, showing that of the 12 indicators that comprise the index, eight improved over the year. / COURTESY LEONARD LARDARO
UNIVERSITY OF Rhode Island economist Leonard Lardaro released his latest Current Conditions Index for November, showing that of the 12 indicators that comprise the index, eight improved over the year. / COURTESY LEONARD LARDARO

SOUTH KINGSTOWN – In its first move in three months, Rhode Island’s Current Conditions Index fell to 67 in November from its 2016 high of 75 in October, according to University of Rhode Island economist Leonard Lardaro.

Released on Friday, the November CCI value is unchanged from November 2015.

The CCI analyzes the findings of 12 indicators; a CCI reading greater than 50 suggest economic growth and a value less than 50 indicates contraction.

The CCI reported a 0.2 percent dip in the state’s unemployment rate in November 2016, which was 5.3 percent.

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Seven CCI measures reported positive developments in November:

  • There was a 2.7 percent jump in total manufacturing hours and the manufacturing wage rose 4.3 percent
  • U.S. consumer sentiment increased 2.5 percent
  • Government employment grew 0.8 percent
  • There was a 0.5 percent increase in the size of the labor force, the fourth consecutive year-over-year improvement since August 2016
  • Unemployment benefit exhaustions fell 12.2 percent
  • A 1.5 percent increase was seen in private service-producing employment

Four indicators reported negative findings:

  • There was a 3.9 percent dip in employment services jobs
  • A 2.0 percent slip was measured in both single-unit housing permits as well as retail sales
  • New unemployment claims grew 20.1 percent (not a positive development)

In 2017, said Lardaro, Rhode Island celebrates the 30th anniversary of its transition from a manufacturing-based economy to a post-manufacturing-based economy and “has yet to regain the employment lost during the last recession.”

He added: “In spite of all the media hype, Rhode Island is only in the first inning of its reinvention for this newer type of economy.”

“Rhode Island’s economy continues to hang in there as we move into the final months of 2016,” Lardaro said.

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