Jones Lang LaSalle


Fed says NJ economic growth likely
By LINDA A. JOHNSON
The Associated Press

TRENTON -- New Jersey's economy appears to be picking up steam, with employment holding strong, manufacturing employees putting in longer hours and housing construction picking up, at least temporarily, the Federal Reserve Bank of Philadelphia reported Tuesday.

While the regional bank's latest monthly forecast puts economic growth at more than 3 percent through the fall, a bank economist said it's too soon to declare a boom.

"We're seeing stronger numbers, but before we draw any conclusion, we want to see another month or two" of similar data, said Ted Crone, a vice president at the regional bank.

One reason for Crone's caution: The most recent data used in the forecast was collected in January, when unseasonably warm, fair weather likely boosted home construction and could have affected other key factors such as manufacturing.

Still, the bank's forecast that the Garden State economy will grow by 3.3 percent from January through September is the best since that level was predicted in November 2004. The bank's nine-month forecasts, issued each month, have generally been for below 2 percent growth since last June, Crone said.

Meanwhile, the bank's index of current economic activity rose 0.4 percent from December to January, more than in most recent months. The economy has grown by 0.9 percent in the last three months and by 3.1 percent over the last year.

Crone said New Jersey has matched the average economic growth of the 50 states nearly exactly over the past year