R.I. leading indicators rise 0.5% in September

E-FORECASTING.COM said Rhode Island's leading indicator rose 0.5 percent in September to 128.8. / COURTESY E-FORECASTING.COM
E-FORECASTING.COM said Rhode Island's leading indicator rose 0.5 percent in September to 128.8. / COURTESY E-FORECASTING.COM

PROVIDENCE – An index of Rhode Island’s leading economic indicators increased 0.5 percent in September to 128.8, according to a report issued by e-forecasting.com on Monday.

The index rose 0.6 percent in August, following a gain of 0.7 percent in July. This was the second consecutive month in which the percentage gain did not surpass or match the previous month’s numbers.

A reading of 100 on the Providence Business News/e-forecasting.com Leading Economic Indicator Index is equivalent to the state’s activity in 2000.

The index uses nine statistics to forecast the direction of the state’s economy over the next three to six months. Positive numbers signal growth while negative numbers denote contraction. Seven of the nine components that make up the leading indicator index had a positive contribution: unemployment claims, exports of manufactures, regional consumer expectations, national stock prices, interest rate spread, national orders index and state employment.

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Two of the nine components had a negative contribution: weekly hours in manufacturing and building permits.

In September, Rhode Island’s six-month growth rate increased 5.4 percent, after an increase of the same amount in August. This compares with a long-term annual growth rate of 1.8 percent, the same as the annual growth rate of the state’s overall economic activity.

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