Printer Friendly

MELLON COINCIDENT INDEX SHOWS CONSOLIDATION IN PITTSBURGH ECONOMY

 PITTSBURGH, July 6 /PRNewswire/ -- Mellon Bank's Coincident Economic Index for the Pittsburgh region, a monthly approximation of aggregate business activity in the four-county Pittsburgh metro area, fell 0.9 percent in April to 105.9.
 The drop follows a 0.5 percent dip in March. Despite the back-to-back declines, this is viewed as a period of consolidation (a temporary pause following stronger growth), and not renewed decline.
 While all four components of the index -- civilian employment, industrial power sales, wages and salaries, and retail sales -- dipped slightly in April, employment remains well above year-ago levels, power sales are steady, and real wages and salaries have moved higher this year.
 Recent weakness in the composite index can be traced to sluggish retail activity, where sales slipped after a very strong Christmas season. However, measures of discretionary spending such as sales of general merchandise, apparel and furniture stores show much stronger results than the overall retail sales figures imply.
 In addition, local employment moved ahead briskly in the first quarter. Companies added about 9,000 new workers, bringing the level to 972,000 -- the highest since 1981. Last winter, factory positions, building trade and local retailing jobs all rose. In April, the jobless rate fell to 6.6 percent, well below the national rate. Of concern is the health care industry where jobs dropped about 1,000 since last summer.
 Pittsburgh has recorded employment gains in services every year since l971, and the labor market outlook continues to improve with year-over-year growth of about 1.5 percent so far in l993.
 "Continued solid growth of the local economy should provide more support for in-migration," explained Richard Berner, chief economist, Mellon Bank. "Not only are the number of jobs increasing, but the quality of the positions has improved as well. Average pay of area workers has risen steeply beyond the national trend. Meanwhile, the city remains a low-cost living area, allowing workers to translate pay into higher living standards and renewed gains in consumer outlays."
 Improving trends in population have also sparked homebuilding. The 18,000 annual declines in local population during the 1980s appear to have ended in l990, giving way to a population rise of 9,000 in the metro area during 1991. This improvement also promises to bolster the demand for local services and retail stores. Meanwhile, rapid growth in the North Hills area, coupled with low mortgage rates have been major boosts for construction.
 Pittsburgh Coincident Index
 April l976 = 100
 April l988 99.6
 April l989 104.8
 April l900 l07.5
 April l99l l04.1
 April 1992 106.2
 April l993 l05.9
 March l993 106.9
 April l993 l05.9
 April l99l down 0.9 percent from March l993
 -0- 7/6/93
 /CONTACT: Tilda Walsh of Mellon Bank, 412-234-5873/
 (MEL)


CO: Mellon Bank ST: Pennsylvania IN: FIN SU: ECO

CD -- PG008 -- 8698 07/06/93 14:34 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 6, 1993
Words:482
Previous Article:COMMODORE ENVIRONMENTAL SERVICES, INC. ANNOUNCES SECOND QUARTER RESULTS
Next Article:IMAGEWARE SOFTWARE INC. ANNOUNCES MORPHWIZARD SPECIAL EFFECTS WINDOWS(TM) SOFTWARE
Topics:


Related Articles
MELLON BANK: PITTSBURGH INDEX SLIPS IN APRIL
MELLON BANK: PITTSBURGH INDEX SLIPS IN MAY FOR FIFTH CONSECUTIVE MONTH
MELLON BANK: PITTSBURGH ECONOMIC INDEX STUMBLES IN JUNE
MELLON: PITTSBURGH ECONOMIC INDEX SHOWS INCREASE FOR JANUARY
MELLON INDEX SHOWS SLIGHT IMPROVEMENT IN PHILADELPHIA ECONOMY
PITTSBURGH COINCIDENT INDEX RISES 0.1 PERCENT IN JUNE
MELLON BANK: PHILADELPHIA COINCIDENT INDEX REMAINS STEADY
MELLON BANK: PITTSBURGH COINCIDENT INDEX DIPS SLIGHTLY IN JULY
PHILADELPHIA COINCIDENT INDEX ADVANCES IN JULY
MELLON: PHILADELPHIA COINCIDENT INDEX DIPS SLIGHTLY IN AUGUST

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters