Boston Business Journal reports MassBenchmarks findings
The Boston Business Journal’s profile of MassBenchmarks’ latest findings on the state economy included input from Alan Clayton-Matthews, economist at Northeastern University and MassBenchmarks Senior Contributing Editor. MassBenchmarks, the quarterly journal of the Massachusetts economy is published by the UMass Donahue Institute in cooperation with the Federal Reserve Bank of Boston.
The journal measured the state’s fourth quarter economic growth at a 2.3 percent annual rate, down from 3.2 percent in the third quarter and lower than the U.S. fourth quarter rate of 2.8 percent. The slowdown is largely attributed to a slump in demand for the information technology products that propelled the state’s recent economic spurt.
The tech sector, which helped Massachusetts recover quickly from recession, is now in its own cycle of slowing growth, Clayton-Matthews said. "The tech sector has a cycle of its own as well that's not congruent with the overall business cycle," he said. "It's going through a slow growth period in 2011 and perhaps into 2012."
January 27, 2012