Bay State economy sputters in Q1

Jordan Graham | Boston Herald

The Bay State economy shrank during the first three months of the year, the second straight quarter of less growth than the country, which also saw disappointing growth for the first months of 2017.

In the first quarter of the year, Massachusetts’ gross domestic product fell by 0.5 percent, according to the economic journal MassBenchmarks. The decline is largely because of slow wage and income growth, despite strong gains in employment, said Alan Clayton-Matthews, a MassBenchmarks editor and professor at Northeastern University.

Still, it is not time to panic, Clayton-Matthews said. The state’s labor market has remained strong, and consumer and business confidence are high.

“I’m not worried that it means the economy is shrinking or going into a recession,” he said. “The problem that caused it was low wage and salary income indicators that may be affected by the bonus season and doesn’t necessarily mean households are losing income.”

Read the full article here.

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