New York City's economy grew at an annual rate of 7.3% in the third quarter of 1999, the fastest growth for any quarter since the recession of the early 1990s, according to Economic Notes, a publication of Comptroller Alan G. Hevesi. The national economy grew 4.8% in the third quarter.

"New York City is ending the millennium with a bang. The City economy has now grown faster than the nation for five quarters in a row. And we have regained every job lost in the last recession," Hevesi noted.

• Payroll Jobs, based on preliminary data, were up in 3Q99 by a seasonally adjusted 32,700 above the 12,800-jobs growth in 2Q99. Private-sector jobs increased in 3Q99 by 25,200, up from 11,000 in 2Q99. NYC job growth was 3.7% for the quarter, above the U.S. rate of 2.1%.
• Personal Income Tax (PIT) Revenues, a proxy for personal incomes, rose 15.9% in 3Q99 compared with 3Q98, after adjusting for the phase-out of the 12.5% PIT surcharge and other changes (costing $172.7 million in 3Q99). Actual PIT revenues were down .5%.
• The Inflation Rate for the NYC metro area was 2.1%, lower than the average U.S. rate of 2.3%.
• The Unemployment Rate in the City in 3Q99 rose to 7% compared with 2Q99's 6.6%, which was the lowest since 5.8% in 1Q89. The U.S. unemployment rate fell to 4.2%.
• Other Indicators were mixed but favorable overall. Initial unemployment claims and the number of building permits authorized improved in 3Q99, but the help-wanted-ad index declined. In 3Q99 Manhattan commercial vacancy rates declined, while rental rates grew. The hotel industry had its best quarter in 1999, as the occupancy rate and average daily room rate both increased compared with 3Q98.

(The full report is available at www.comptroller.nyc.ny.us)

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