The North Carolina Index of Leading Economic Indicators showed a minor decline of 1.0% in August compared to June, according to the latest data. This dip was primarily driven by a 4.9% drop in building permits, which weighed heavily on the overall index. However, other components remained largely unchanged, with a notable 5% decrease in initial jobless claims contributing positively to economic momentum.\n\nThe temporary slowdown in construction activity may reflect caution among developers amid ongoing uncertainty surrounding interest rates, federal monetary policy, trade tariffs, and broader economic conditions. Some builders appear to be holding off on new projects until the economic landscape becomes clearer.\n\nDespite these headwinds, the overall trajectory for North Carolina’s economy remains stable, with no significant acceleration or contraction expected in the near term. This balanced forecast reflects the complexity of current economic dynamics, where multiple factors are simultaneously in motion. Once these variables settle, a more definitive picture of future growth should emerge. For now, continued monitoring of key indicators will be essential to understanding the state’s economic path forward.\n— news from WRAL.com\n\n— News Original —\nMike Walden: NC economic outlook steady amid uncertainty\nThe NCSU INDEX OF NORTH CAROLINA LEADING ECONOMIC INDICATORS (the “Index”), an indicator of the direction of the State economy, declined slightly in August, the latest month with available data. The Index fell 1.0% from its reading in June. n nHowever, the reduction was almost totally due to a 4.9% pullback in building permits. On the positive side, there was a 5% reduction in initial jobless claims, which translates to a “plus” for the Index. n nThe other factors showed no or little change from June. n nGiven the uncertainty about interest rates, Federal Reserve policy, tariffs and the strength of the economy, some builders may be pausing construction until a clearer view of the economy emerges. n nIn the meantime, the outlook for the North Carolina economy is steady, meaning no large swings upward or downward in economic growth. This is a sensible forecast when there are so many “economic balls in the air.” Once those balls land – and hopefully that will be soon – we’ll have a clearer look at the future of the North Carolina economy. So, keep watching!