Indicators positive for state's economy
| • | U.S. economy reaches 3.1 percent growth |
By Andrew Gomes
Advertiser Staff Writer
A predictor of Hawai'i's future economic growth continues to gain strength, suggesting that the state's ongoing recovery will remain solid well into the first half of next year.
The state's index of leading economic indicators measured in July rose for the sixth consecutive month. Seven of 10 indicators were positive, up from six positive indicators in June.
The index, compiled by the state Department of Business, Economic Development & Tourism, is designed to gauge the performance of the local economy five to 10 months ahead.
The latest results suggest that slow economic expansion will continue at least through May.
Of the five Hawai'i economic measures in the index, construction permit values made the strongest gain, followed by improved unemployment claims and higher residential real estate prices.
The local real estate transaction measure lost value, because of a slowed pace of growth in home sales. Average work hours were down, also weakening the Hawai'i part of the index.
Of the five national and international measures, a bump in interest rates resulted in the only negative indicator, while Japanese labor earnings and the purchasing power of foreign currencies against the U.S. dollar were up.
Seiji Naya, director of the state's economic development agency, noted that sustained growth in Hawai'i's economy over the long term will depend to a large extent on sustained growth in the U.S. and Japan economies.
Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8065.
