SalemNews.com, Salem, MA

Nation/World

November 11, 2013

Report: State outgains U.S. in quarterly GDP

BOSTON — The Gross Domestic Product in Massachusetts grew at an annual rate of 3.5 percent in the third quarter, statistics show, faster than the 2.8 percent U.S. GDP growth rate reported last week by the U.S. Commerce Department.

MassBenchmarks, published by the UMass Donahue Institute and reflecting the views of area economists, noted an accelerated pace of growth in Massachusetts during the quarter, compared to the second quarter, when the state’s annual growth rate was 1.7 percent and U.S. GDP grew at a 2.5 percent annual clip.

Economists, however, cautioned that the rate of growth in Massachusetts during the fourth quarter is due to slow, in part due to the federal government shutdown in October and the effects of federal spending cuts, which analysts say are a threat to research, higher education, health care and the defense sectors.

At 7.2 percent, the most recently released Massachusetts jobless rate — for September — matched the U.S. unemployment rate.

But the state’s rate had been pegged at 6.8 percent at the end of August.

According to MassBenchmarks, a recovering housing market and consumer and business spending are driving growth in Massachusetts and providing some relief from the federal spending cuts and higher federal payroll taxes.

The journal’s authors also noted their third-quarter assessment is incomplete because the government shutdown delayed the release of September employment data. State labor officials plan a Nov. 22 release of the next round of jobs and unemployment information, a larger batch of data that will cover August, September and October.

The Commerce Department said the U.S. GDP growth in the third quarter beat the expectations of market observers who expected a 1.9 percent increase.

U.S. Secretary of Commerce Penny Pritzker said the economy grew at its fastest pace since the third quarter of 2012.

In the first quarter, the Massachusetts economy expanded at a 3.4 percent annual rate compared to 1.1 percent for the U.S. economy.

1
Text Only | Photo Reprints
Nation/World

Local News
  • Bandits hit 2 Beverly banks over 2 days

    BEVERLY -- Brazen robbers hit two Beverly banks in less than 24 hours. A man was arrested in connection with Tuesday's robbery, while the suspect in yesterday's incident remains at large, police said. It has been some time since this North Shore city

    April 17, 2014

  • 140416_SN_KYU_BAKER_3 Time to raise our game SALEM -- Swampscott Republican Charlie Baker has worked in state government for years, had success in the private sector and ran for governor in 2010. But the question he hears most on the campaign trail: Why does he want to run again? Baker said he

    April 17, 2014 3 Photos

  • Marblehead temple to drop mandatory dues MARBLEHEAD -- It might be a sacred space, but even the house of God gets bills. Temples have traditionally paid those bills by charging mandatory dues for membership -- dues that could run into thousands of dollars a year. Now Temple Emanu-El has la

    April 17, 2014

  • North Shore residents to run in 2014 Boston Marathon

    The Salem News asked those on the North Shore who are running this year's Boston Marathon to share their reasons for running. 

    If you're running the marathon this year, it's not too late to share why you're running. Send a brief paragraph, a photo of yourself and a link to your fundraising site (if applicable) to Cheryl Lecesse at clecesse@salemnews.com.

    April 4, 2014

  • Hunters call for an end to Sunday ban BOSTON -- Mike Prendergast likes spending time outdoors, hiking through the wilderness, sleeping under the stars, and taking aim with his compound bow on white-tailed deer and wild turkey from his perch in a tree. Working more than 50 hours a week as

    April 17, 2014