Document Type


Publication Date



Economic growth is slowing, and is projected to continue to decelerate into the second half of 2008, and then to rebound moderately. The slowdown is directly related to the impact of the declining housing market, the sub-prime mortgage shakeout in the finance sector, and the high cost of heating oil and gasoline. Credit tightening is threatening to curtail business activity and the solvency of investors and households involved in sub-prime lending or borrowing. High energy prices are reducing non-energy consumer spending. The impact of the declining housing market has already affected the state’s economy. Massachusetts is experiencing declines in housing construction and construction employment, and slower growth in consumer spending.


Published in MassBenchmarks, Vol. 10, No. 1, pp. 4-9:


University of Massachusetts Donahue Institute



To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.