Wednesday, July 31, 2002

Wilmington, NC –Economic activity in the three counties of Brunswick, New Hanover, and Pender in Southeastern North Carolina will rise 2.8 percent to $7 billion over the next 12 months, according to a forecast released at a news conference this morning by UNC Wilmington economists Claude Farrell and William W. Hall, Jr.

Dr. Hall stated that the local economy grew at annual rate of better than 4 percent during first quarter 2002. Growth will be slower during the second quarter. Output will rise 2.8 percent or $196 million over the next 12 months.

Dr. Farrell noted that the retail sector has been and continues to be a strong component of the local economy. Over the period 1993-2001, retail sales in Wilmington grew at annual compound rate of 7.8 percent, second only to Raleigh. Even though sales fell in Wilmington fell 4.5 percent over 2001, only two other cities in the state, Asheville and Winston-Salem, posted higher sales growth.

Both economists anticipate a similar rebound in the national economy. The outlook for the state economy indicates a slower rebound and a rebound that lags that of the local and national economies.

For additional comment and analysis, contact Dr. Farrell at 910.962.3511 or Dr. Hall at 910.962.3419.