The FDIC report is in line with last month's assessment by the Federal Reserve Bank of Philadelphia, which said that economic growth in New Jersey had declined to its slowest rate in nearly five years, hobbled by increasing initial unemployment claims and falling housing permits.
FDIC Offers Further Data N.J. Economy Slowing
~ Asbury Park Press
10/6/06
NEWARK -- Further evidence that economic growth in New Jersey has declined came Thursday as a federal banking agency found continued deterioration in the state's jobs and home sales.
Employment grew by just 0.9 percent in the second quarter, trailing the national average of 1.4 percent, the Federal Deposit Insurance Corp. reported. The rate in central and southern New Jersey was above 1.5 percent, but losses in northern New Jersey because of factory closings and layoffs dragged the average down.
Jobs growth has been largely flat for the past two years, in part because of weakness in the telecommunication and pharmaceutical sectors.
Sales of existing homes in New Jersey fell for the third consecutive quarter, plunging 16 percent for the three months ended June 30, the sharpest quarterly drop since 1991, the FDIC found.
In addition, the rate at which home prices rose also descended, to a 12.4 percent annual rate. That is the state's lowest appreciation rate in two years, although it is still higher than the national average.
The FDIC report is in line with last month's assessment by the Federal Reserve Bank of Philadelphia, which said that economic growth in New Jersey had declined to its slowest rate in nearly five years, hobbled by increasing initial unemployment claims and falling housing permits.
Business owners are losing some confidence in the state economy, according to a telephone survey of 150 owners of small- to mid-sized firms in New Jersey conducted this summer for PNC Bank.
About one-fourth are pessimistic about New Jersey's economy, an apparent increase from a year ago, when about one in six were pessimistic.
Their hope for the national economy also seemed to be eroding, with about one-third saying they were pessimistic, up from one-fourth a year ago, the survey found. The New Jersey poll results had a sampling error margin of plus or minus 8 percentage points.
THE ASSOCIATED PRESS
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