Tourism rebounded and personal income was revised upward. The residential construction sector continues to perform at an "exceptionally high level," UHERO researchers wrote in the quarterly report.

While the economy to slow a bit in the fourth quarter, UHERO is forecasting real income growth of 4.3 percent for 2005. That's stronger than the previous estimate of 3.6 percent issued by UHERO in its September report.

The strong growth is expected to generate some additional inflation over the next year. Inflation is forecast to accelerate to 3.7 percent in 2005 and 3.9 percent in 2006. That compares to UHERO's September estimate of 3.4 percent in 2005 and 3.8 in 2006.

Continental Airlines to add L.A.-Kahului flight Feb. 16

Continental Airlines today announced that it will add a daily non-stop flight between Los Angeles and Kahului beginning February 16.

The new route replaces the current Houston-Maui service, which will be discontinued. Continental's daily non-stop flight CO137 will depart from Los Angeles International Airport at 5:55 p.m., arriving at Kahului, Maui at 9:35 p.m. Flight CO136 will return from Kahului daily at 11:40 p.m., arriving in Los Angeles at 6:35 a.m. the next day.

The new non-stop Los Angeles-Maui flight complements Continental's twice-daily non-stop flights between its Houston hub and Honolulu, its daily non-stop flight between its New York hub at Newark Liberty International Airport and Honolulu, and daily flight between Los Angeles and Honolulu. The airline also operates daily service between Honolulu, Guam and the Marshall Islands.