Report Sees Warning Signs For Mass. Economy
BOSTON (CBS) – The Massachusetts economy simply can’t keep outrunning the effects of global economic conditions. That’s the painful conclusion of the latest MassBenchmarks report from the UMass Donahue Institute.
WBZ NewsRadio 1030 New England Business Editor Anthony Silva reports
UMass Professor and Mass Benchmarks Co-Editor Michael Goodman says it appears the slowing of the national and international economy is taking its toll in Massachusetts.
Goodman says the state is starting to see slowing in employment, and in some areas, signs of outright decline. There also seems to be slowing of investment in production of key sectors of the innovation economy, particularly information technology. Those sectors have been driving growth in recent years.
Goodman says a good indicator of the technology sector — sales of silicon computer chips — are down worldwide. Massachusetts is feeling the effect, but movement here is very slow.
He says while there are positive signs, particularly improvements in the housing markets, there are concerns. According to Goodman, the state and the nation are facing headwinds, including what he calls the evolving situation in Europe, and the looming “fiscal cliff” in this country.
Goodman says the report from the UMass Donahue Institute does not anticipate any return to a recession in Massachusetts.