Latest Regional Economic Outlook

Economic growth across the various U.S. regions varies considerably. This is true historically and remains true in view of the latest regional economic forecast.

While everyone is hoping and wishing--even praying--for more growth, most appear to be either flat or just treading water at this point. Economy.com's latest regional economic outlook finds 12 states are seeing some growth, 11 are still in recession and the remaining 27 are flat and treading water.

Several Northeastern states, including NY, NJ, CT and MA, appear to be feeling the most pain at the moment, but OH and MI are not doing much better in the Midwest. Even the states that have seen favorable economic growth across the last decade--UT, GA, WA, CO, AZ, NV, NC and SC are having their share of problems.

What are the key issues for regional economic growth? According to Economy.com, they are defense contracting, accelerated business investment, improving business travel, and rising commodity prices will generate some positive upside potential. But consumer spending, air transportation, auto manufacturing and weak state fiscal conditions will cause some areas to lag behind the broader economic recovery.

How much will defense spending help? That depends greatly upon the state you are talking about. Defense spending will continue to rise at a pace strong enough to have an impact on some regions. Missile defense, shipbuilding and aircraft production will be the primary beneficiaries, which will benefit all major defense contractors. This will make the current emerging pattern of regional growth more pronounced since the South and the West host most of the major defense contractors. The largest concentrations are in Fort Worth, Norfolk, central Florida, southern California, the Washington DC area, St. Louis, Baltimore and Philadelphia.

If you subscribe to Economy.com, you can find the latest regional forecast here.