February 18, 1999
(Finance)

Economic Indicators Strong

Finance Minister Paul Dicks said today that statistical data indicates the economy of Newfoundland and Labrador is maintaining its momentum of strong growth.

"The numbers say it all," noted Minister Dicks. "Manufacturing shipments are up, strong growth in retail trade is continuing, and the consumer price index is down. This data supports what we've known all along - that the economy of Newfoundland and Labrador is growing."

The latest data on retail trade shows that sales in November 1998 were up by 6.7 per cent on a seasonally adjusted basis compared to a year earlier. From January-November 1998, sales gains were broadly based with total retail trade up by 3.5 per cent. New vehicle sales were up 2.3 per cent last year. Consumer spending has been supported by strong gains in employment over the last two years. There are now 11,000 more jobs in Newfoundland and Labrador than there were in January 1997, an increase of 6.2 per cent.

Consumers in Newfoundland and Labrador are also benefitting from lower prices for goods and services. The Consumer Price Index actually declined by 0.5 per cent in January compared to a year earlier, while the national CPI rose by 0.6 per cent during the same period. Major factors contributing to the lower CPI include a 22.3 per cent decline in fuel oil prices, as well as lower gasoline and electricity prices.

Also contributing to the economy was the value of manufacturing shipments which rose in 1998 to nearly $1.8 billion, an increase of 6.1 per cent. This occurred despite a newsprint strike that lasted just over five months.

"We expect continued economic growth for the province in 1999," said Minister Dicks. "This broadly-based growth will be led by continued expansion in the oil and gas industry, and supported by other resource industries, tourism and information technology."

Media contact: Paula Dyke, Communications (709) 729-0329.

1999 02 18                      4:50 p.m.