The Street covers MassBenchmarks findings
TheStreet, an online network of financial news and information, featured an article on MassBenchmarks’ latest findings. MassBenchmarks is the quarterly journal of the Massachusetts economy published by the UMass Donahue Institute in cooperation with the Federal Reserve Bank of Boston.
The journal estimates that the gross state product grew at an annual rate of 2.3 percent during the fourth quarter of 2011, putting the state’s economic growth below the U.S. fourth quarter rate of 2.8 percent. Demand for information technology products, a staple of the state's economy, peaked in the early part of 2011 but softened during the latter portion of the year, resulting in a slower pace of growth.
While it is the first time since the second quarter of 2010 that Massachusetts’ economy grew more slowly than the U.S., economists do not believe this is any indication of a long term slump and foresee 3.5 percent growth in the first quarter of 2012 and 4 percent in the second quarter.
The article quotes Martin Romitti, director of Economic and Public Policy Research at the Institute and managing editor of MassBenchmarks. According to Dr. Romitti, "The rise in the stock prices of leading Massachusetts firms, improved consumer confidence, and sharp increases in discretionary consumer spending in recent months are all encouraging signs that the recovery under way can maintain its momentum."
Read article: Mass. Economic Growth Slows in 4TH Quarter
January 27, 2012