Greater Philadelphia Economy to Turn Upward Later this Year According to New Leading Indicator

PHILADELPHIA--(BUSINESS WIRE)--The Greater Philadelphia economy is projected to begin a recovery from the worst recession in the post-World War II era during the final months of 2009, according to Select Greater Philadelphia’s and IHS Global Insight’s Leading Index for the Greater Philadelphia region.

“Greater Philadelphia's diversified economic base has cushioned the shock waves from the global economic crisis”

For the first time since the start of the recession in December 2007, the leading indicator turned up slightly in May. The Leading Index has been indicating in recent months that the Region’s economy was probably approaching the trough of the recession as the month to month percent declines have been declining.

“Greater Philadelphia's diversified economic base has cushioned the shock waves from the global economic crisis,” said James Diffley, executive managing director of U.S. Regional Economics for IHS Global Insight.

June data confirmed the trend with a reading of 97.2, up from 97.1 in May and the trough of 96.9 in March and April. The back-to-back positive monthly readings are in stark contrast to the series of declines which began in September 2008.

According to Phil Hopkins, Director of Research for Select Greater Philadelphia, “The rise in the Leading Index values in May and June suggests the possibility of a return to positive, but modest, economic growth in the region by the end of this year, but cautions that several more months of increases in the Leading Index are needed to confirm the likelihood of the recovery.”

The Leading Index shows that the Greater Philadelphia Region’s economy is expected to continue to experience a slower rate of decline than the U.S. economy. It provides important signals about the direction of future economic conditions in the Greater Philadelphia region and was launched as part of a growing need to understand how global and national events affect the economy of Greater Philadelphia, particularly given the turbulent economic climate.

IHS Global Insight forecasts that the GPR and U.S. economies will recover at the same time, with output recovering first, and employment growth not resuming until at least well into 2010.

For more news on the latest index please visit www.selectgreaterphiladelphia.com, go to the Regional Data link and select Economic Indicators. The current values can be found at: http://selectgreaterphiladelphia.com/data/eco_indicators.cfm

About Select Greater Philadelphia

Select Greater Philadelphia (Select) is an economic development marketing organization dedicated to attracting companies to the Greater Philadelphia region. Select assists companies interested in the vicinity by providing detailed information about the 11-county area and a one-stop connection to numerous resources that help companies make informed decisions about locating to the region. Through global marketing efforts, Select works to promote the region’s key assets to help build the area’s economy. The Greater Philadelphia region encompasses northern Delaware, southern New Jersey and southeastern Pennsylvania. Select is a private, non-profit organization and an affiliate of the Greater Philadelphia Chamber of Commerce. For more information, visit www.selectgreaterphiladelphia.com or call 215-790-3777.

About IHS Global Insight

IHS Global Insight (www.globalinsight.com), an IHS company, provides the most comprehensive economic and financial information available on countries, regions and industries, using a unique combination of expertise, models, data and software within a common analytical framework to support planning and decision-making. Through the world's first same-day analysis and risk assessment service, IHS Global Insight provides immediate insightful analysis of market conditions and key events around the world, covering economic, political, and operational factors. IHS (NYSE:IHS) is a leading global source of critical information and insight, dedicated to providing the most complete and trusted information and expertise. IHS product and service solutions span four areas of information that encompass the most important concerns facing global business today: Energy, Product Lifecycle, Security, and Environment supported by Macroeconomics. IHS employs approximately 3,800 people in 20 countries.

IHS is a registered trademark of IHS Inc. All other company and product names may be trademarks of their respective owners. Copyright © 2009 IHS Inc. All rights reserved.