Oct. 26, 2026
WHAT: Rhode Island’s economic performance for August has again exceeded what aggregate numbers indicate, according to University of Rhode Island economist Leonard Lardaro, citing significant, sustained strength in the goods-producing sector. August’s Current Conditions Index value of 50 marks the fifth time in the last six months that a monthly CCI showed at least 50, which is a neutral value, or better.
Lardaro describes the August CCI of 50 as “very favorable and strong,” noting that as long as the underlying momentum continues, there is still room for continued optimism. While pockets of weakness still exists, strengths in key areas, such as housing, manufacturing, decreasing layoffs and retail—all of which are cyclical—provide further evidence that Rhode Island is in the early stages of emerging from its recent shallow recession, Lardaro says.
Six of the CCI’s 12 economic indicators improved in August relative to a year ago. Retail Sales, a critical economic indicator that has been a strength through the post-pandemic period, grew by 4.2%. Total Manufacturing Hours continued its growth, increasing by 3.4%.
Single-Unit Permits, related to new home construction, saw another increase, rising by 16.5%. New Claims, related to layoffs, decreased by 16.4% in August.
Benefits Exhaustions, which indicates long-term unemployment, saw its positive momentum slowed in August by rising 13.3%. Manufacturing Wage also saw declines for the first time in a few months, dropping by 2.6%.
The Unemployment Rate dropped by 0.6% in August; however, Lardaro says data revisions in February are needed to see a more accurate picture on the true rate.
Employment Service Jobs, a leading labor market indicator, fell by 1.5% in August. U.S. Consumer Sentiment continued its consistent monthly declines, dropping by 11.1%, Lardaro says.
Government Employment also fell by 1.8%, attributed to declines in federal government employment, Lardaro says, while Private Service-Producing Employment, a proxy for service-sector employment, rose by 0.3%.
HOW: Use attached information, including summary and charts prepared by Lardaro for news reports. He is available for broadcast and print interviews. Lardaro will be blogging about the new labor data during the coming weeks.
WHEN: Oct. 26, 2026
FOR INFORMATION: Leonard Lardaro, office, 401-874-4128, home, 401-783-9563; James Bessette, URI Department of Communications and Marketing, 401-874-3520, james.bessette@uri.edu.
BACKGROUND: The Current Conditions Index, created by Lardaro, measures the strength of the present economic climate in Rhode Island by following the behavior of 12 indicators.