State forecast revised, more optimistic - Hawaii News Now - KGMB and KHNL

State forecast revised, more optimistic

By Howard Dicus - bio | email

HONOLULU (HawaiiNewsNow) - Hawaii state economists who previously saw a flat year for tourism now predict 2.3% more visitor spending in 2010.

In their latest quarterly revision of the official state economic forecast, Department of Business, Economic Development & Tourism economists say they expect the additional spending to come from the same number of visitors. If visitor counts improve, the dollar outcome could be better still.

The DBEDT economists still see a net decline in jobs in 2010 - unemployment is usually a lagging indicator, one of the last factors to improve after a recession ends - but predict some improvement in construction, which lost 5,000 jobs last year.

Using the Honolulu consumer price index as an indicator of statewide price inflation, the forecast calls more slightly more inflation than previously predicted, but still less than 2% for full year 2010.

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