Worcester Economy’s 4th Quarter is Strongest of 2019

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Wednesday, February 05, 2020

GoLocalWorcester Business Team

Worcester economy grows in fourth quarter.

The Worcester economy increased at a 2.0% annualized rate during the fourth quarter of 2019, according to the latest update of the Worcester Economic Index (WEI).

The 2.0 percent increase was the strongest quarter of 2019.

“During the first three quarters of 2019, the local employment numbers were down slightly from the start of the year, but a strong fourth quarter has allowed the Worcester area to experience a modest net gain in jobs over 2019,” said Assumption College Professor of Economics Thomas White, the creator of the index.

Read the Report Here

Third Quarter Numbers

According to the report, fourth-quarter new business incorporations in the greater Worcester area fell about 5.4 percent since the fourth quarter of 2018, while state-wide initial unemployment claims increased 1.6 percent from a year ago, both of which are negative signals.

White notes, “after several years during which both of these indicators provided consistently positive signals, it is too early to claim a turning point. However, the fact that both are now providing small negative signals is something to keep an eye on.”

Looking Ahead

According to the December 2019 forecast, the WEI is expected to grow at a 1.2 percent annualized rate over the next two quarters.

White added, “The modest growth forecast is due to the mixed signals provided by the leading indicators. The continued strength of the stock market, and the availability of credit favor an increase in growth, but the interest rate spread, and, to a lesser extent, consumer expectations, are restraining the growth forecast.”

The next Worcester Economic Indicators report will be issued in May of 2020.