Thursday, August 21, 2014

All News is Local

When you lose your job, it's a recession.
When I lose mine, it's a depression.

   We hear  reports on economic performance every day, and usually they are a summary of a survey of a sample. This method is useful for spotting trends, but not always valuable for smaller regions, firms or individuals, or even for the overall performance, just as a snapshot of a dancer doesn't prove the excellence of the entire ballet.
   So while national statistics are interesting, when your job is not affected, the report borders on the abstract. It may be distressing that the national economy grew slowly after falling in the previous three-month period, but for those whose job is secure, many couldn't care less.
   With all that in mind, here's a new report from the government's Bureau of Economic Statistics showing each state's performance as 2013 ended. It's the first time the BEA has reported state-level data. Previously, the government released national statistics, and then regional reports on GDP growth.
   Of the 50 states, only one -- Mississippi -- posted a decline in its economy in the fourth quarter of 2013. Minnesota showed no change. Pennsylvania showed a robust 3.4 percent, while neighboring New Jersey and Delaware posted growth of 2.6 percent and 2.2 percent, respectively. Maryland's economy grew by 2.3 percent, and the New York State economy posted an increase in production of 1.3 percent.
   There's always a delay in reporting regional data, while the government number-crunchers gather more statistics, and early reports are regularly revised. There can also be a wide fluctuation, so first-glance numbers should be held at a distance and kept there until others come in, and show a pattern.
   Even so, taken as a whole, there seems to be progress. The national GDP decreased by 2.1 percent in the first quarter of this year, but rebounded to a growth rate of 4 percent in the second three months. And if earlier state-level data show a believable trend, our jobs may be safe.

No comments:

Post a Comment