Mass. Economy Grew 3.9% in Q3
The Massachusetts economy grew at a 3.9 percent annual rate in the third quarter, according to MassBenchmarks.
That makes it five consecutive quarters in which the state economy has outpaced national growth, which was 2.5 percent in the quarter. In the second quarter, the state economy grew at 3.4 percent, compared to a 1.3 percent annualized growth rate for the nation.
Despite solid growth numbers in the Bay State, economists warned that growth is slowing.
For example, the number of new jobs, as well as income and sales tax receipts all slowed from July to September.
Increased productivity, however, during the first half of the year prevented those indicators from impacting the state's output, economists said.
MassBenchmarks' leading indicator, which predicts economic conditions for the next half-year, was 2.9 percent. Economists at the University of Massachusetts Donahue Institute, which produces MassBenchmarks, expect 2.7 percent growth in state product in the fourth quarter and 2.9 percent annualized growth in the first quarter of 2012. There is expected to be "modest" job growth accompanying those figures through the next six months.
Risks remain in the market, however, most notably the European debt crisis, federal debt reduction negotiations, high unemployment rates and a weak housing market.
But, the state and nation are avoiding a "double-dip" recession, economists noted.
"Despite the clear signs that the pace of growth has been slowing, it appears that Massachusetts - along with the nation - will continue to expand and avoid a double-dip recession," noted Dr. Alan Clayton-Matthews, MassBenchmarks senior contributing editor and associate professor of economics and public policy at Northeastern University.
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