Worcester Economy Struggles in Third Quarter
Tuesday, November 05, 2019
Worcester economy increases by 0.3% in third quarter.
Read the Report Here
“On a seasonally adjusted basis, Worcester area household employment and payroll employment estimates were both up during the third quarter, but not enough to move the index substantially. Those employment estimates, as well as the labor force have not moved much over the past year so the economy has kind of plateaued. There’s little evidence of a sustained slowdown, but not much growth either,” said Assumption College Professor of Economics Thomas White, the creator of the index.
According to the report, the uptick in economic activity follows two quarters during which the index fell modestly.
Third Quarter Numbers
Third-quarter new business incorporations in the greater Worcester area increased about 7.8 percent since the third quarter of 2018, a positive signal.
In addition, state-wide initial unemployment claims decreased 4.8 percent from a year ago, which is another positive signal of the strength of the economy.
Looking Ahead
According to the September forecast, the WEI is expected to grow at a 1.5 percent annualized rate over the next two quarters.
White added, "Like the WEI itself, the components of the forecast haven’t changed much in recent months. Credit market conditions still seem to be favorable according to the Conference Board’s Leading Credit. And the interest rate spread, which is an indicator of monetary policy, continues to have a negative impact on the forecast even though the Federal Reserve has been easing monetary policy recently, with another rate cut announced on Wednesday.”
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