Business briefs

Advertiser Staff

State economic forecast down

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 signs the state's economy is slowing.

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," Seiji Naya, the department's director, said in a statement yesterday. "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.

Hawai'i jobless rate rises to 5%

Hawai'i's unemployment rate, which has been rising slowly all year, climbed to 5.0 percent in June, up from 4.3 percent the month before and 4.6 percent in June 2000, the state Department of Labor and Industrial Relations said.

Unemployment has not been this high since November 1999. The rate reached a nine-year low of 3.6 percent in December and fell below the U.S. rate late last year for the first time in almost five years. But that didn't last long.

For the past three months the state's unemployment rate has outpaced the U.S. average. National unemployment for June was 4.7 percent.

In Hawai'i, 30,000 residents were unemployed and 573,500 were employed in June.

The state attributed part of the increase in unemployment to seasonal changes.