Massachusetts and US economy grow faster than expected

(The Boston Globe, November 07, 2013)

The state and national economies grew faster than expected over the summer, due to an improving housing market and wage and salary growth, according to a report by the University of Massachusetts and the Federal Reserve Bank of Boston. Those improvements helped offset the economic drag from automatic budget cuts known as sequestration and higher federal payroll taxes that went into effect earlier this year. The state economy grew at a 3.5 percent annual rate from July through September, according to the report. The national economy expanded at 2.8 percent rate during the same period, the US Commerce Department reported. Economists, however, expect growth to slow next quarter as a result of the 16-day partial shutdown of the federal government last month.