States’ Economic Health Hits Nine Month Low
Most U.S. states’ economies showed signs of worsening during the second quarter, the weakest results in nine months, illustrating the economy’s faltering recovery leading into a presidential election.
The economic health of 36 states, including Michigan, California and Connecticut, declined in April through June from three months before, according to the Bloomberg Economic Evaluation of States index. It was the worst showing since the third quarter of 2011, when all but five states declined.
The retreat reflects the drop in hiring by businesses, which restrained workers’ incomes and weighed on stock prices. Tax collections also grew more slowly in some states, reflecting the weaker pace of economy’s expansion.
“Firms are behaving quite cautiously with respect to fixed business investment and hiring across the nation,’’ said Joseph Brusuelas, a senior economist with Bloomberg LP. “We’re feeling the drag all over, even where things are slightly better.’