Description

The economy is picking up speed. Real gross
domestic product (GDP) accelerated to a 7.2%
annualized rate in the second quarter, employment
advanced for the 4th straight month in October and
manufacturing activity is picking up.
Virginia is seeing the same signs that growth is building.
Employment, the broadest and most timely indicator
of economic growth at the state level, rose for
7 of the last 12 months. Retail sales are accelerating
as we approach the all-important holiday selling season
and auto sales are edging upwards.
As usual, not all regions are experiencing the same
growth. Northern Virginia has moved back to its spot
of fastest growth with a 1.1% gain in employment
over the twelve months ending with September 2003
while Roanoke is in last place with a 3.9% contraction
over the same period.
And, looking over the horizon, not all industries are
expected to perform in line with history. The information
technology (IT) industry is one in question. After
creating over 314,000 jobs from 1994 to 2001 in
the nation—or 1.8% of the growth over that period,
some forecasters are predicting that U.S. firms will
ship future growth offshore because of the lower cost
of labor. Under such a scenario that is described in
the Virginia Economic Trends feature article, Virginia
would incur losses as well—56,000 people or 1.6%
of those who work in Virginia are in IT industries and
they make an average wage of $61,975 per year.
Virginia Economic Trends
4th Quarter 2003 Report. Data through September 2003.
Keeping businesses in touch with the economy.
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