Maine’s economy grew a sluggish 1.3 percent in the final three months of 2015, lagging behind both the nation and New England, figures released Tuesday morning show.
The report by the Bureau of Economic Analysis shows that Maine’s economic growth edged out New Hampshire, which grew by 1.2 percent in the final quarter of last year, but trailed behind the other four states in New England. The region’s economy grew by 2.1 percent in the final three months of last year, and the national economy grew by 1.7 percent.
The BEA said Maine’s economic growth during the quarter ranked 32nd among the 50 states. In New England, Massachusetts posted the strongest growth during the quarter, with its economy expanding 2.6 percent.
The report said that the gross domestic product – a measure of the output of goods and services – in Maine increased to $57.6 billion in the final quarter of the year, up from $57.2 billion in the third quarter of 2015. The figures are adjusted to smooth out some seasonal variations in economic production.
By sector, Maine’s professional, scientific and technical services grew fastest in the final quarter, contributing 0.24 percentage points to the overall 1.3 percent growth in the state economy. Agriculture, forestry, fishing and hunting contributed 0.19 percentage points to overall growth and management of companies and enterprises added 0.15 percentage points. The finance and insurance sector contracted, taking away 0.20 percentage points from the state’s growth rate, and the economic contribution of government also declined, reducing the state GDP by 0.10 percentage points.
The reduction in the output of the finance and insurance sector mirrored national results – the BEA said that sector declined 3.1 percent during the final three months of the year, reducing the growth of the national GDP by 0.22 percentage points,
Nationally, the information industry was strong, contributing 0.50 percentage points to the increase in the national GDP. Construction; professional, scientific and technical services; and non-durable goods manufacturing were also strong during the final three months of 2015, the BEA said.
For the year, Maine’s economy swung widely and was slowing as the year ended. The state’s GDP decline 11.3 percent during the first quarter and grew by 9.1 percent in the second quarter, 2.1 percent in the third quarter and 1.3 percent in the final quarter.
The BEA report said that economic growth during the last three months of 2015 was strongest in Indiana, where the GDP grew by 3 percent. It contracted most sharply in Wyoming, where the GDP fell 3.4 percent.
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