Financial Development Exceeded Expectations in Q2-2024
On a day when the worldwide monetary markets took a pointy flip downward on indicators of a U.S. economic system slowdown, the economists at MassBenchmarks reported the “nice shock” that state financial development exceeded expectations within the second quarter.
Massachusetts actual gross state product elevated at an annual fee of three.3 p.c in the course of the second quarter of 2024, based on MassBenchmarks, whereas U.S. GDP elevated at an annual fee of two.8 p.c, per the U.S. Bureau of Financial Evaluation. Each signify enchancment over the primary quarter — Massachusetts GDP grew at an annual fee of 1 p.c whereas U.S. GDP grew at a 1.4 p.c fee in the course of the first three months of the 12 months.
“The upper-than anticipated enhance in second quarter development got here as a nice shock following the extra modest development skilled in the course of the first quarter. In Massachusetts, this improve in development was supported by reasonable payroll employment development, excessive withholding and gross sales tax receipts — which suggest excessive wage and wage revenue and spending development, low unemployment charges, and a rising labor drive,” the most recent notes from the MassBenchmarks board, revealed by the College of Massachusetts Amherst Donahue Institute in cooperation with the Federal Reserve Financial institution of Boston, mentioned. “Labor market indicators, whereas giving blended alerts, had been largely constructive within the second quarter. Payroll employment development slowed however remained constructive, increasing at a 0.6 p.c annual fee in Massachusetts within the second quarter as in comparison with 1.5 p.c for the U.S.”
In comparison with the second quarter of 2023, employment was up 0.7 p.c in Massachusetts and 1.7 p.c within the U.S. in the course of the second quarter. However MassBenchmarks cautioned that the reasonable employment development estimate “could, nonetheless, be overstating job development in Massachusetts.”
