NC LEAD Releases August N.C. Today


The N.C. Department of Commerce’s Labor and Economic Analysis Division has released its August issue of N.C. Today:

July economic data indicate little improvement in state labor market conditions. North Carolina’s smoothed seasonally adjusted unemployment rate rose to 8.9 percent in July from 8.8 percent in June. This rate is 1.5 percentage points higher than the national 7.4 percent rate and is tied with Rhode Island’s as the third highest state unemployment rate. The North Carolina labor force participation rate fell by 0.2 of a percentage point to 62.0 percent, 1.4 percentage points lower than the U.S. rate. North Carolina online job openings fell by 6,300 in July, according to the Conference Board. Total nonfarm employment rose by 8,200 jobs over the month and by 69,200 jobs over the year.

Nationally, real gross domestic product accelerated to an annual rate of 1.7 percent in the second quarter of 2013, up from 1.1 percent in the first quarter according to the “advance” estimate released by the Bureau of Economic Analysis. This increase primarily reflects growing business investment in structures along with a 5.4 percent upturn in goods exports including civilian aircraft and nonautomotive consumer goods. These were partly offset by slowing consumer spending growth and growing imports. The Conference Board Consumer Confidence Index, which had increased in June, fell slightly in July due to weakening in consumers’ economic and job expectations. However, confidence remains well above the levels of a year ago.

Using June data, July’s edition of the N.C. State University Index of Leading Indicators posted no change for the month, although it is 2.7 percent higher over the year. Positive gains in initial unemployment claims, manufacturing hours and manufacturing earnings were partly offset by a significant drop in residential building permits. This drop may have more to do with that component’s volatility than with signs of a slowing of the state economy, according to Dr. Michael Walden, who developed the index.