Hawai'i economic forecast down

Advertiser Staff and News Services

The leading economic indicator for Hawai'i fell in April for the ninth month in a row.

The indicator, compiled by the Department of Business, Economic Development & Tourism to predict growth five to 10 months down the road, points to the drop in real estate transactions and construction permits as early signs of a slowdown in the state's economy.

In addition, median housing prices fell from the previous year, and initial unemployment claims increased.

The indicator is "signaling slower growth as compared to the strong growth seen in 2000," said Seiji Naya, the department's director. "We are currently forecasting a slight decrease (in personal income) to 2.5 percent growth this year." Personal income grew by 3.1 percent last year.

April is the latest month for which the index of 10 economic indicators can be calculated.