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South Carolina’s economic indicators point down |
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Thursday, 20 November 2008 |
SCBIZ Daily Staff
COLUMBIA -- The latest measurements of South Carolina’s economy confirm what most already know: Things have taken a definite turn for the worse.
The Moore School of Business at the University of South Carolina released its latest analysis Tuesday, with its set of leading indicators down 1.2% for September. The index is down 9.7% in the past 12 months. It is composed of the average manufacturing workweek (in hours), initial claims for unemployment insurance and real weekly earnings.
The report called this data “increasing evidence” that the state’s economy is in a recession, noting that the state shed 14,800 jobs in September. It offered no encouragement for the near future, either.
“The large drop in the index is evidence that the South Carolina economy is likely to see tougher times ahead before it sees any improvement,” the report said.
Components of the index highlight the fundamental weakness in the state’s economy. The average manufacturing workweek decreased 0.9% for September while inflation-adjusted earnings dropped by 1.4%. September’s seasonally adjusted residential construction dropped 14%.
Another interesting, if not heartening, number in the report: Real retail sales were down 0.5% for the month and 0.2% annually.
The credit crunch makes it difficult to foresee any improvement, the report said.
“Until financial markets stabilize and regain normal operations, it is very unlikely that there will be improvement in the economy,” the report concluded.
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