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| Current Economic Climate - Winter 2006 INFORMATION BULLETIN April 2006 No. 200611 The purpose of this bulletin is to provide local leaders with information on key economic trends that make up the current economic climate. These trends are significant because they impact the availability of funds for education, health care, and other public services at the national, state, and local levels. This bulletin is issued twice each calendar year — summer and winter — and presents information about changes in the gross domestic product, employment and unemployment, consumer prices, retail sales, housing, industrial production, and stock market performance. Other pertinent trends are described as well. In addition, a brief summary of projections for the economy is presented. Finally, comments on both Federal and State Budgets are offered. We will continue to issue regular monthly Information Bulletins on the Consumer Price Index. This is the sixth issue of the Current Economic Climate. Your reactions and suggestions on this series of Information Bulletins are most welcome. Please contact Dan Kinley or Neil Foley at NYSUT Research and Educational Services with your feedback and comments. — Highlights — • The annual average growth of the Real Gross Domestic Product for 2005 was • The national unemployment rate for December 2005 was 4.9 percent which is the lowest rate since December 2000. • The New York State unemployment rate for December 2005 of 5.0 percent is the lowest for December since 2000. • New York State employment in December 2005 was 8.680 million workers, an increase of 40,000 workers since December 2004. • The manufacturing sector in New York State has lost 378,700 jobs from December 1990 to December 2005. During the same period, jobs in Health Care and Social Assistance have grown by 344,000. • For the year 2005, the Consumer Price Index was 3.4 percent which is up over the • According to the Congressional Budget Office, the Federal Budget deficit is projected to be $371 billion for the federal fiscal year ending September 30, 2006 and $335 billion for the year ending September 30, 2007. • The New York State Budget outlook has improved. Projections place the General Fund surplus for the state fiscal year ending March 31, 2006 at about $3 billion. The Executive Budget proposes tax cuts that grow in the out years. The proposed Executive budget does not address the need for a statewide solution for the Campaign for Fiscal Equity lawsuit, nor does the proposed Executive budget address the need for improved funding for higher education and health care. • On February 15, 2006, the Federal Reserve Board reported to Congress that the U.S. economy should continue to do well in 2006 and 2007. However, the Federal Reserve Board cautions that risks for the economy remain including the prospects for the housing sector and the volatility of energy issues. |
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