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Mon July 30, 2012
U.S. Economy Slows In Second Quarter; How Will It Affect Northwest States?
New figures out Friday show the U.S. economy is growing at a slower pace than previously thought. That's due in part to weak consumer spending and a rise in imports.
The new figures from the U.S. Department of Commerce show an annual growth rate in the gross domestic product of just 1.5 percent for the second quarter. That's a drop from the first quarter and it's another sign of a weak economic recovery.
But state level figures released last month show that Oregon and Washington's gross domestic product is higher than the national average.
Is that good news? Not necessarily.
Mark McMullen of the Oregon Office of Economic Analysis says the region produces a lot of high value products such as computer chips and other electronics.
"They have a tremendous amount of value, and there's a lot of productivity in those industries, and we add a lot of value to those products here," McMullen says. "The question really is, how much of that value leaks out to out of state shareholders of these technology firms."
McMullen says Oregon is experiencing the same slowdown in consumer spending as the rest of the nation. Economists in Olympia say that state's economic growth continues to be modest.
On the Web:
Gross Domestic Product, 2nd quarter 2012
Copyright 2012 Northwest News Network