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State growth in Q3 fueled by an unexpected surge in the state labor force.

In the third quarter of 2018, real gross domestic product in Massachusetts grew at an estimated 3.3 annualized rate according to the MassBenchmarks Current Economic Index, released today by MassBenchmarks, the journal of the Massachusetts economy published by the UMass Donahue Institute in collaboration with the Federal Reserve Bank of Boston. Nationally, real gross domestic product grew at a 3.5 percent annualized rate during the same period according to the advance estimate of the U.S. Bureau of Economic Analysis (BEA). Based on the latest available data, we now estimate that in the second quarter, Massachusetts real gross domestic product expanded at a 5.9 percent rate while U.S. GDP grew at a 4.2 percent rate. For the first quarter of this year, the BEA estimates that real GDP grew at a 1.5 annualized percent in Massachusetts and at a 2.2 percent rate nationally.

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