The Big Island continues to share in the statewide economic expansion, although the pace of growth is expected to slow as the residential real estate and construction sectors lose steam, according to a forecast released by First Hawaiian Bank yesterday.

The report noted that through the first six months of this year the sales volume for single-family homes was down 23 percent from the same period a year earlier.

"Local Realtors observe that speculators are gone, while potential buy-and-hold customers are waiting, watching prices closely," according to the report.

Another constraint on Big Island growth is the tight labor market, the report said. The low unemployment rate means employers are having a difficult time finding qualified workers.

"On the west side, jobless rates are already well below the statewide figure," said Leroy Laney, First Hawaiian Bank economic consultant. "Some estimates indicate that the Kohala Coast hotels have vacancies for almost a thousand workers."

The lack of workers could eventually cause the Big Island's economy to slow, Laney added.

Construction is still booming, but Laney said people in the industry "see emerging signs of some cooling off in the future."

The decision by NASA to eliminate further funding for the proposed $50 million Outrigger telescopes on Mauna Kea was bad news for the astronomy sector, Laney said. "Big Island astronomers have long felt a cancellation would be catastrophic for the future of the astronomy industry in Hawai'i."