The U. of O. Labor Education and Research Center's Index of Economic indicators fell to 103.3 in May, a 0.2 percent drop from the previous month. The index is based on a 1997 benchmark of 100. Three of the eight indicators that comprise the index - Oregon help-wanted advertising, Oregon weight distance tax, and new orders for core manufactured goods - deteriorated. Four indicators - residential building permits, Oregon nonfarm payrolls, consumer confidence, and the interest rate spread - improved in May. Oregon initial unemployment claims were effectively unchanged for the month.
Help-wanted advertising unexpectedly declined sharply, perhaps due to the increasing influence of Internet alternatives to traditional newspaper ads. If so, this indicator may need to be replaced in the future; alternatives are being investigated.
Nonfarm payrolls posted another strong gain as Oregon employers added 4,600 workers, bringing the year-to-date total to a gain of 15,100. May job gains, however, were narrowly concentrated in three sectors - construction, government, and education and health services.
It remains to be seen if gains in construction can be maintained given the slowdown in housing activity, said Timothy Duy, director of the Oregon Economic Forum at the University of Oregon.
The index suggests continued economic growth in Oregon in the next three to six months.
(bizjournals.com)
