The news for Rhode Island of late has been good. Payroll employment growth was revised up from the mediocre level of 1.0 percent from the originally released data to a healthier 1.7 percent. Retail sales continue to be very strong, even after growing at double-digit annual rates throughout much of 1997. Existing home sales set yet another record in 1997. Local government employment grew by almost 6 percent in 1997, fueled mostly by increasing school enrollments.
Solid growth is likely to continue for several years.
Our state unemployment rate fell below the 5-percent level at the end of 1997, but it has since risen above that level as we move into the second quarter of this year. Tourism has fortified its role as a success story. It is currently our second largest employer and its growth has been extraordinary for quite some time. In 1997, goods exports from Rhode Island grew at 18.5 percent, well above the national average. Monthly values have been quite respectable for quite some time now, remaining well above 75 which, based on historical performance, seems to indicate some acceleration in the overall pace of economic activity.