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Nationally, the Federal Reserve Index of Industrial Production rose 0.7 percent during the third quarter. Gross domestic product increased 0.6 percent, or 2.4 percent on an annualized basis. The Purchasing Managers’ Index averaged 50.4, down 5.4 percent from the second quarter.

One of the five major economic indicators improved during the third quarter, one was unchanged and three worsened. Non-agricultural employment rose 0.1 percent in the third quarter and the unemployment rate was stable at 3.8 percent. New claims for unemployment benefits rose 8.7 percent, and the value of building permits, which reflect construction plans, slipped 2.1 percent for the quarter. The average manufacturing workweek was lower at 41 hours.

Since the third quarter of 1999, non-agricultural employment has grown 2 percent in the Southeast, slightly less than the 2.1 percent growth nationally. During the third quarter, growth in non-agricultural employment was above the national average in Florida, South Carolina and Arkansas. Employment was lower in five states. The largest declines in employment were recorded in Mississippi and West Virginia.

For the past year, new unemployment claims have risen 8.7 percent. Higher levels of new unemployment claims were reported during the third quarter in all 13 states tracked. The largest increases were reported in Kentucky and North Carolina.

The seasonally adjusted unemployment rate for the Southeast was 3.8 percent in the third quarter, unchanged from the revised second quarter of 2000. When compared with the third quarter of 1999, the jobless rate declined 0.2 of a percentage point. Nationally, the third quarter unemployment rate was 4 percent, also unchanged from the previous quarter. For the year, the nation’s unemployment rate decreased 0.2 of a percentage point.

Third quarter unemployment was below the national average in eight of the 13 states tracked. The lowest rates were in Virginia (2.5 percent), Maryland (3.4 percent) and North Carolina (3.4 percent). The highest rates were in Mississippi (5.5 percent) and West Virginia (5.3 percent).

Of the 13 Southeastern states tracked by the index, Mississippi, Kentucky and Florida reported a higher value for building permits issued during the third quarter when compared with the preceding quarter. The largest declines in permits were reported in Tennessee (-6.6 percent) and Arkansas (-6.2 percent).

The Wachovia Southeast Business Index tracks the pace of economic activity in Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, South Carolina, Tennessee, Virginia and West Virginia, as well as the District of Columbia. National and individual state statistics are detailed on the attached table.

Data are adjusted to smooth the effects of historical seasonal factors and certain statistical aberrations. Building permit data have been deflated by the Consumer Price Index to reflect planned construction spending in constant 1982-84 dollars. Because the District of Columbia’s economy lacks sufficient comparability with states, especially in manufacturing, a business index is not calculated.

Wachovia Corporation, with dual headquarters in Atlanta and Winston-Salem, N.C., is a leading financial holding company serving regional, national and international markets. At Sept. 30, 2000, Wachovia had assets of $72 billion. Member companies offer consumer and commercial banking, bank card, asset and wealth management, capital markets and investment banking, brokerage and insurance services. Wachovia Bank, N.A., the principal subsidiary, has nearly 700 offices and 1,400 ATMs in Florida, Georgia, North Carolina, South Carolina and Virginia.