Thursday, August 31, 2006

Hawaii Economy Slows, Inflation Highest in Nation

The Star Bulletin has this sobering update:

Hawaii's projected inflation rate for 2006 was revised up to 4.8 percent from the 3.8 percent predicted in May's forecast to reflect higher oil prices -- which boost the costs of goods throughout the economy -- as well as increases in housing costs.
Even the builders are slowing down:

But growth in construction is expected to level off in the next few years, due to rising interest rates and a decline in demand for housing in recent months.

Job growth forecasts were revised upwards to 2.5 percent from 2.2 percent in the previous quarter's report. But this is expected to slow to 1.5 percent in 2007, and 1.2 percent in following years.

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