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
  • Guilty verdicts in probation trial

    July 24, 2014

  • Ex-Market Basket boss wants to buy company

    July 24, 2014

  • Court finds Danvers nursing home at fault DANVERS -- The estate of an elderly woman who died after a fall and weeks of neglect at a Danvers nursing home has won a $14.5 million verdict in a wrongful death and negligence case. A Middlesex Superior Court jury awarded the estate of Genevieve Ca

    July 24, 2014

  • chism2 [Duplicate] Chism arraigned in second attack

    BOSTON -- When the woman came out of the bathroom, accused murderer Philip Chism was standing a foot in front of her. He put his hands around the clinician's neck, started choking her and pushed her up against a cinder block wall, a prosecutor said.

    July 24, 2014 3 Photos 7 Stories

  • 140723_SN_DLE_PROTESTERS4 Danvers Market Basket forced to toss food

    DANVERS -- Cars peppered the Market Basket intersection Wednesday afternoon with honks supporting grocery chain workers, who held signs calling for the reinstatement of fired CEO Arthur T. Demoulas. But the latest development in the grocery chain spe

    July 24, 2014 5 Photos 6 Stories