The recent turmoil in the equity markets has prompted questions regarding the overall economic health of the South Carolina Economy. While no one can predict the future, there are a number of indicators that can provide insight on economic activity in our state.

Most comments regarding the market volatility address the current situation in China, and this is an important factor in our economy. It is not widely publicized that South Carolina is one of the largest exporters of products in the United States, so there is substance to the comment that when China sneezes, we catch cold. But there are positive factors also at work.

Construction has come back from a difficult recession to assume its rightful place as a leader of the economic recovery. Manufacturing in our state has shown growth and stabilization. Even the assumed rate increase anticipated from the Federal Reserve will help those living on retirement investments, a significant and growing segment of our population.

The most important factor however, is emotion. The feelings of consumers will impact those intangibles in the economy and either support or undermine our progress, but it is too early to come to a conclusion. There has been no market correction in some time, we are in the seventh year of our recovery and business cycles usually follow a seven year track, but our fundamentals are strong, and we have begun to build momentum. Every sports fan knows that that may be the strongest indicator of the ultimate outcome.

Bottom line is that it is too early to panic but awareness and investigation are always appropriate. Right now that is probably the best course of action to take.