 Hawai'i paying more — expensive oil is to blame
By Frank Cho
Advertiser Staff Writer
A key gauge of future economic activity in Hawai‘i fell in November, suggesting slower growth for the state’s economy in the second half of this year.
The state Department of Business, Economic Development and Tourism yesterday reported the state’s leading economic indicators mostly rose during November because of an increase in the number of real estate transactions on O‘ahu, rising home prices and a jump in average hours worked.
Those gains, however, were pulled down by a decline in the value of construction permits, falling consumer confidence in the Pacific region and a weakened Japanese yen.
"The LEI is telling us that the Mainland and Japanese economies will have an impact on Hawai‘i in the second half of the year," said Seiji Naya, the department’s director. "While most of Hawai‘i’s economic indicators still point to growth, we are watching developments on the Mainland with more than a passing interest."
The index is watched closely in Hawai‘i by economists, government planners and business leaders because it indicates where the state’s economy is headed in the next five to 10 months.
In November, six of the 10 index components declined while four increased. The four that did better all were Hawai‘i components: O‘ahu real estate transactions, the average prices paid for real estate, initial unemployment claims and average hours worked.
Both of the international components of the index declined in November, the state said. The yen-dollar exchange rate weakened, further reducing the buying power of Japanese tourists, and growth in earnings for Japanese workers slowed.
Frank Cho can be reached by phone at 525-8088, or by e-mail, fcho@honoluluadvertiser.com.
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