PROVIDENCE – An index of Rhode Island’s leading economic indicators produced by Providence Business News and e-forecasting.com rose 0.6 percent in July to 122.6 from 121.9 in 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.
The state leading indicator increase of 0.6 percent in July showed rising growth for the state, which registered an increase of 0.2 percent in June.
The economic-indicator 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 made a positive contribution to Rhode Island’s economy in July, including: unemployment claims, weekly hours in manufacturing, exports of manufactures, regional consumer expectations, national stock prices, the interest rate spread and the national orders index.
Two of the components made a negative contribution to index in July, including: building permits and the state employment barometer.
In July, Rhode Island’s six-month growth rate – “a signal of turning points” – was 3 percent, edging up from June’s revised 2.3 percent rate.
By comparison, the long-term annual growth rate for the index was 2 percent, the same as the annual growth rate of the state’s overall economic activity.