Wednesday, July 16, 2014

Northeastern States: 2014 Economic Outlook



The Northeast economy has had even more difficulty regaining its momentum than the national economy. Real GDP in the Northeast rose just 1.0 percent in 2013, compared to a 1.8 percent gain nationwide. Our own regional economic activity index shows the region continuing to expand at a slower pace relative to its historical trend during the first quarter, with the index remaining in negative territory at -0.37. The weak reading mostly reflects slower job growth than has been seen in the past, even though conditions appear to have improved more recently. Nonfarm employment has risen 0.9 percent over the past year in the Northeast and the unemployment rate has fallen 1.4 percentage points to just 6.2 percent. Income growth has also increased solidly, with personal income rising at a fairly healthy 4.0 percent annual rate in the first quarter and up 3.8 percent year to year.

Source: Wells Fargo's Economic Commentary / Wells Fargo Economics Group

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