Delaware Economic Index for July 2013 from Treasurer Chip Flowers

Friends of the Delaware State Treasury - 

Attached for your review is the Delaware Economic Index for July 2013.  As you know, the new and improved interactive Index provides key economic and financial data about the First State over the past 60 days.  To view the complete Index, please click the image below or click here.  If you have any comments or questions, please do not hesitate to contact your Delaware State Treasury at (302) 672-6700 or visit our website at treasury.delaware.gov.   Thank you!
Best,

State Treasurer Chip Flowers

A Message from your State Treasurer

 

To People of the State of Delaware:

 

Welcome to the July 2013 edition of the Delaware Economic Index. 

 

Delaware’s economy remains at a “fair” level. The state unemployment rate was 7.2% in May as the rate continues to remain above 7%.

 

Over the past two months the State Treasury announced a proposed deal with Fidelity Investments to reduce fees charged to eligible participants in the State’s Deferred Compensation plans. The agreement would benefit up to 11,000 state employees and result in an aggregate savings to our state employees of $500,000 over a three-year period. The deal was made possible due to the success of the Treasury’s outreach efforts, which increased state employee participation rates to a level needed to negotiate lower fees. My administration will work to find every possible means to lower fees charged by those who have contracts with the State Treasury. 

 

The General Assembly passed a balanced budget of $3.7 billion for Fiscal Year 2014. The big economic story in Delaware during this period was the announcement by The Data Centers LLC to invest $1 billion to create a data management and storage facility in Newark. The project is projected to generate 290 full-time jobs and 50 part-time jobs. 

 

Also, Federal Reserve officials stated Delaware is well-positioned for future economic growth, regional manufacturing resumed growth and the regional economy’s economic growth rate accelerated. However, Delaware economic growth in 2012 was only 0.2%.

 

The national economic climate remained modest. First quarter economic growth was revised downward to 1.8% and the national unemployment rate was 7.6% inJune, which represented no change since March. An estimated net 195,000 jobs were created in June while the revised final data showed a gain of 195,000 jobs in May and an increase of approximately 199,000 net jobs inApril. Worker productivity resumed growth in the first quarter of 2013, but remained at a low annualized rate of 0.5%. There remains an absence of any fiscal stimulus from Washington, but the Federal Reserve has continued its accommodative monetary stimulus. However, Chairman Ben Bernanke stated the Federal Reserve may slow down the pace of its bond purchases later this year and cease the program in mid-2014. These changes are contingent on the reaching of economic benchmarks.

 

This month’s special feature is an overview of the Federal Reserve System. The Federal Reserve plays a crucial role in our economy and one of my goals upon entering office was to build a strong working relationship with the Federal Reserve and other key federal agencies. I am pleased to say we now have such a relationship. 

 

If you have any comments on our recent work or in general, feel free to e-mail me at statetreasurer@state.de.us or call (302) 672-6700.

 

We are here to serve you. 

 

Best,

 

Chip Flowers,

Delaware State Treasurer


PLEASE FOLLOW THIS LINK TO VIEW THE ENTIRE REPORT:   http://treasury.delaware.gov/wp-content/uploads/Delaware-Economic-Index-7-2013.pdf