The Massachusetts economy is currently on a trajectory that is similar to that of the national economy, at least as measured in the aggregate. During the second quarter of the calendar year, the U.S. economy grew at an annualized rate of 3.4 percent. During the same period, the Massachusetts economy grew at 3.6 percent annual rate of growth, down from a strong 4.1 percent rate in the ﬁrst quarter. The state’s economy is being pulled in two directions. On the upside, strong demand for the state’s technology, science, knowledge, and health-based goods and services is creating good job and income growth. On the downside, the housing market slump is restraining employment growth and consumer spending in related sectors. There is also growing concern about the spillover effects to the economy from the sub-prime mortgage sector collapse.
Clayton-Matthews, Alan, "2007's Housing Market: Not Yet Recovering from Recent Ills" (2007). Public Policy and Public Affairs Faculty Publication Series. 9.
University of Massachusetts Donahue Institute
Published in MassBenchmarks, Vol. 9, No. 2, pp. 4-7: http://www.massbenchmarks.org/publications/issues/vol9i2/3.pdf