Economist: RI may be out of its rut

Rhode Island appears to be coming out of its economic rut, according to URI Economics Professor Leonard Lardaro. However, he warned recovery is still months away.

According to Lardaro, the Current Conditions Index for June rose to 42, which is its highest level since June 2007. Last month, the CCI was 17, April it was eight and March is was zero.

The CCI is a formula Lardaro created using 12 key indicators to assess the current state of the Rhode Island economy. The CCI ranges from zero, when no indicators improve compared to year-earlier levels, to 100, when all 12 show improvement. Values above 50 indicate that the Rhode Island economy is expanding, while values below 50 are indicative of contraction.

Lardaro said in June eight indicators either improved or were close to improving.

He said Rhode Island should hopefully see greater numbers of indicators improving each month. However, he said it will still be months before Rhode Island reaches a bottom and a recovery begins.