R.I. leading indicators rise 0.6% in August

PROVIDENCE – An index of Rhode Island’s leading economic indicators increased 0.6 percent in August over July to 128.3.
The six-tenths of a percent gain marked an end to five consecutive months of an increasing rate of growth for the economic indicator index produced by Providence Business News and e-forecasting.com. The LEI had increased 0.7 percent in July over June.

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. In August 2013, the leading indicator index was 121.3.

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 Rhode Island’s leading indicator index had a positive contribution in August: unemployment claims, building permits, exports of manufactures, regional consumer expectations, interest rate spread, orders index – national, and state employment.
Weekly hours in manufacturing and national stock prices had negative contributions to the Rhode Island’s leading indicator.
In August, Rhode Island’s six-month growth rate – “a signal of turning points” – went up by 5.1 percent, after an increase of 4.8 percent in July. This compares to a long-term annual growth rate of 1.9 percent, the same as the annual growth rate of the state’s overall economic activity.

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2 COMMENTS

  1. For a more detailed picture of the overall situation; Try going to
    http://www.bls.gov/news.release/empsit.t15.htm and/or http://www.bls.gov/lau/stalt.htm One is updated monthly, the other one quarterly….jkp