Mass economy enters sixth consecutive quarter of growth
BOSTON (SHNS) – Supply chain disruptions and labor shortages continue to dampen economic growth, but indices released Monday show Massachusetts economy is in expansionary territory for sixth consecutive quarter and four consecutive quarters of growth for the US economy.
Citizens said its National Citizens Business Conditions Index ended the third quarter at 57.1, down from the second quarter reading of 57.4. The state’s economy reading in the third quarter was 55, up from 53.1 in the second quarter. Readings above 50 reflect an economy in expansionary mode.
“Despite the continuing challenges of the pandemic, the third quarter was a period of strong demand in most sectors of the economy,” Citizens said. “With the continued support of low interest rates and fiscal spending initiatives, most sectors appear to have established a healthy growth path. Concerns about higher inflation have increased and the employment sector still has some way to go to achieve pre-COVID status. ”
The index is based on a set of metrics, including data on manufacturing, consumer spending, business banking data, initial jobless claims, commodity prices, and new business applications. “The business is incredibly strong and the levels of trust are pretty high,” said Tony Bedikian, Global Markets Manager at Citizens. “We are not yet completely out of the pandemic, but at this point most sectors of the economy have established some normalcy given the benefits of vaccines and the fiscal and monetary stimulus that continue to support the recovery. complete. Many companies are doing well and would do even better if it weren’t for headwinds such as supply chain disruption and labor shortages.
The new index readings were released as House and Senate leaders from Beacon Hill prepare to commit $ 3.65 billion in one-time funds to all of Massachusetts, as part of efforts to over the next several weeks to allocate much of the funds from the American Rescue Plan Act and the state’s fiscal year 2021 surplus.