N. Dakota, Michigan? 2 Fastest-Recovering States
Nov. 2 (Bloomberg) -- "Michigan’s economy is recovering from the recession at the second-fastest pace in the U.S., lifted by reviving carmakers and local manufacturers, according to a new Bloomberg index that tracks the pace of state growth.
The home to the U.S. automobile industry was topped only by North Dakota, where an oil boom is raising incomes and boosting government coffers at the nation’s quickest rate. California, Massachusetts and Illinois round out the top five in the Bloomberg Economic Evaluation of States Index (BEES), which uses data on real estate, jobs, taxes and stock prices to gauge the growth rate in 50 states and the District of Columbia.
BEES tracks growth by compiling data on six components that are given equal weight: job creation, personal income, tax revenue, housing prices, mortgage delinquencies and the performance of Bloomberg stock indexes that track the share prices of locally based companies. The BEES index, updated quarterly, is a measurement of growth, not absolute performance, so a slowing economy with low unemployment may rank below a battered state on the mend.
Some of Michigan’s improvement reflects the severity of its decline. It ranked last in the BEES index in the decade through 2010, a period when it was the only state to lose population. In September, it still had unemployment of 11.1 percent, two percentage points above the U.S. average.
The home to the U.S. automobile industry was topped only by North Dakota, where an oil boom is raising incomes and boosting government coffers at the nation’s quickest rate. California, Massachusetts and Illinois round out the top five in the Bloomberg Economic Evaluation of States Index (BEES), which uses data on real estate, jobs, taxes and stock prices to gauge the growth rate in 50 states and the District of Columbia.
BEES tracks growth by compiling data on six components that are given equal weight: job creation, personal income, tax revenue, housing prices, mortgage delinquencies and the performance of Bloomberg stock indexes that track the share prices of locally based companies. The BEES index, updated quarterly, is a measurement of growth, not absolute performance, so a slowing economy with low unemployment may rank below a battered state on the mend.
Some of Michigan’s improvement reflects the severity of its decline. It ranked last in the BEES index in the decade through 2010, a period when it was the only state to lose population. In September, it still had unemployment of 11.1 percent, two percentage points above the U.S. average.
Seventy percent of Michigan employers said they expected the state’s economic outlook to improve over the next 18 months, while only 46 percent expected such gains for the national economy, according to a survey released last month by Business Leaders for Michigan. Mortgage delinquencies dropped at the fourth-fastest pace in the U.S., and personal income and employment growth ranked in the top third, according to data compiled by Bloomberg."
In a separate news story, Michigan Gov. Rick Snyder was quick to point out that Michigan's ranking as second-fastest improving state in the country could “serve as a catalyst" for further business expansion and attract new investment.
HT: Mike W.
HT: Mike W.
3 Comments:
Thanks to big-government pattern legislation, or actual recovery?
I agree to some extent sethstorm.
(1) Really only one way to go for MI, and that's up.
(2) How much recovery spurred by Fed and State incentives to unsustainable businesses (Solyndra anyone?)
(3) Dow Chemical might be a good example. Solar shingles + advanced batteries + TATA services = lots of jobs (and not the minimum wage kind that Perry can create).
And the best part about (3) is that Snyder and nothing to do with it.
Cheers!
So, is what is it about Michigan causing such rapid growth? It is a blue state.
Usually, when Texas tops the charts, the right-wing howls that it is because is Texas is a rugged red state (although cotton farmers are heavily pinko, given money by Uncle Sam).
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