Massachusetts Economy Grows 2% in Q2 as Boston Inflation Jumps 13.1%
Updated
Updated · The Boston Globe · Aug 5
Massachusetts Economy Grows 2% in Q2 as Boston Inflation Jumps 13.1%
1 articles · Updated · The Boston Globe · Aug 5
Summary
Massachusetts real gross state product rose at a 2% annual rate in the second quarter, slowing from 2.4% in Q1 but still topping U.S. GDP growth of 1.5%.
Boston inflation ran far hotter than the nation, with CPI up at a 13.1% annual rate and core inflation at 7.9%, versus 2.9% core inflation nationally.
Payroll employment grew at a 1.1% annual rate in Massachusetts, slightly above 0.9% nationally, even as the state's labor force kept shrinking.
MassBenchmarks tied the moderate expansion to geopolitical and market uncertainty—including the Iran war, oil-price swings and doubts about the AI investment cycle—while saying higher productivity kept Massachusetts ahead.
The report projects Massachusetts GDP growth will edge up to 2.3% in Q3 and 2.5% in Q4 despite aging-workforce and migration constraints.