PROVIDENCE – The Rhode Island gross domestic product was estimated to have expanded at a 1.8% annualized rate in the third quarter of 2019, according to the Rhode Island Public Expenditure Council Tuesday.
RIPEC also projected the state GDP is expected to expand at a 1.6% annualized rate in the fourth quarter.
The United States GDP expanded at a 1.9% annualized rate in the third quarter, while New England GDP expanded at an annualized rate of 1.5%.
RIPEC noted that Rhode Island “needs to grow much faster than the New England region and the nation to close the ‘growth gap’ created since the 2008 Great Recession.”
RIPEC said that its GDP measure, the Current Economic Indicator, was boosted by a strong labor market, offset by a decline in manufacturing. The CEI was developed by economists at The Center for Global and Regional Economic Studies at Bryant University. It is calibrated to grow at the same rate as GDP.
Eight of 11 factors that make up the CEI reflected positive economic growth in the third quarter:
- Regional GDP increased at a 1.5% annualized rate.
- National GDP increased at a 1.9% annualized rate.
- Trade, transportation and utilities employment increased at a 1.2% annualized rate.
- Information-services employment increased at a 4.7% annualized rate.
- Professional and business-services employment increased at a 6.9% annualized rate.
- Financial-services employment increased at an annualized 1.4% annualized rate.
- Leisure and hospitality employment increased at an annualized rate of 0.5%.
- Education and health-services employment increased at a 7.3% annualized rate.
- Average weekly initial unemployment claims declined 26.2%
- General Sales and gross receipt taxes increased at a 7.3% annualized rate.
Indicators that did not improve in the third quarter:
- Wage and salary disbursements showed no annualized growth in the quarter.
- Construction employment declined at a 0.6% annualized rate.
- Manufacturing employment declined at a 2.3% annualized rate.
