The North Carolina Statue University Index of leading economic indicators for the state retreated slightly in August from its reading in July. However, this was not unexpected given the Index’s strong rise in July, said NCSU economist Mike Walden in his monthly report.
Despite the retreat, Walden said, the Index has trended upward for the year.
The impact of this season’s hurricane’s may also affect the index in coming months, he said.
“It will be important to watch for the economic impacts of Hurricanes Harvey and Irma in coming months,” Walden said.
“Based on past experience, the economic impact for the next one to two quarters will be negative. However, once rebuilding begins in earnest, economic growth will be temporarily boosted above its long term trend for up to half a year.”
Among the individual components of the index, building permits rose nearly 6 percent during August.
Initial jobless claims jumped 10 percent. Both manufacturing hours and manufacturing earnings dropped.
As employment gains slow, economic growth will be more dependant on improvements in wages, Walden said.
Data are from the U.S. Bureau of Labor Statistics, the U.S. Census Bureau, and ECRI.
