North Carolina's economic 'index' declines in December
Posted January 31, 2012
Raleigh, N.C. — North Carolina’s statewide economic index declined in December from the previous month, but the author of the monthly report is not changing his view about what to expect in 2012.
The North Carolina State University Index of N.C. Leading Economic Indicators fell 2.1 percent from December, NCSU economist Dr. Michael Walden reported Tuesday.
However, Walden pointed out that the index remained the same as in December 2010.
“[O]ver the past year, all the North Carolina components of the Index are improved or
have shown no change,” Walden wrote. “Thus, the outlook is for a continuing, slowing improving state economy.”
The index is based on a number of factors including worker earnings, building permits, the housing market, hours worked and new unemployment claims.
Walden uses the index to forecast where the economy is headed over the next four to six months.
“All the individual components held steady or slid, with earnings unchanged, the national index, permits, and hours declining, and new unemployment claims rising,” Walden said. “However, like last month, December’s Index was driven by building permits, this time falling by almost 29 percent.”
According to Walden, the state’s regional housing markets were “mostly positive in December.”