Study predicts Massachusetts economy will lose momentum
The Boston Globe - 07/28/2012
The US economy lost momentum over the past three months and Massachusetts is expected to follow as consumer spending slows and the economic crisis in Europe takes its toll.
Although the Massachusetts economy grew at more than double the national rate, according to report released Friday by the University of Massachusetts, a slowdown in the state is imminent, in large part because of the anemic national recovery, analysts said. The state’s economy expanded at a 4 percent annual rate from April to June, UMass said, but the national economy grew at just 1.5 percent, the US Commerce Department reported Friday.
Alan Clayton-Matthews, a Northeastern University professor who did the economic analysis for the report, noted that Massachusetts merchandise exports declined for the first five months of the year in Massachusetts.
“We’re expecting things to get worse,” Clayton-Matthews said. “It looks like we’ve been lucky so far.”