State Falling Into Recession
The state's minimal economic growth in October will give way to outright declines in the next six months, according to the University of Massachusetts Boston Donahue Institute's latest MassBenchmarks Bulletin.
According to the MassBenchmarks Current Economic Index, the state's economy grew at an annual rate of 0.2 percent between September and October, an increase of 1.2 percent compared to the same period a year ago.
However, the MassBenchmarks Leading Economic Index, which forecasts growth for the next six months, is down 1.5 percent, indicating a broad-based economic contraction of about 1.5 percent through April.
Alan Clayton-Matthews, MassBenchmarks co-editor and UMass Boston professor, said the state is transitioning from positive but slowing growth to "outright declines forthcoming in the current quarter and first quarter of next year."
Rising unemployment, slow retail sales, a stagnant housing market and slowing national and international demand for information technology products were pegged as some of the culprits in the state's current economic slowdown.
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