Mass Economy Continues its Expansion in Q1 2014, UMass Journal Reports
The latest MassBenchmarks Bulletin indicates that the Massachusetts state economy grew in the first quarter of 2014 at a rate of 2.6 percent, as compared to the U.S. real gross domestic product rate of 0.1 percent. Payroll employment expanded at a 1.2 percent annual rate, wage and salary income — based on state withholding tax collections — increased at a 15.0 percent annual rate, and spending on goods subject to the state regular sales tax and the motor vehicle sales tax grew at a 6.1 percent annual rate.
"The relatively strong growth for Massachusetts in the first quarter reflects a moderate increase in employment, a sharp fall in the unemployment rate, very strong wage and salary income growth, and increased spending by households and businesses," noted Alan Clayton-Matthews, MassBenchmarks Senior Contributing Editor and Associate Professor of Economics and Public Policy at Northeastern University, who compiles and analyzes the Current and Leading Indexes.
While there are some downside risks to the state's economic outlook associated with slowing growth in China and the uncertainty associated with the crisis in Ukraine, for the time being at least, national and state growth is being supported by the momentum of strengthening domestic demand.
MassBenchmarks is published by the UMass Donahue Institute in cooperation with the Federal Reserve Bank of Boston.
Read the full bulletin, "Mass Economy Continues its Expansion in Q1 2014, UMass Journal Reports"
April 30, 2014