The US economy grew at a dismal 0.5% pace during the first quarter of the year. Some states, of course, have been doing better than others.
The Federal Reserve Bank of Philadelphia has released coincident indexes for the 50 states, which captures the three-month change in economic activity through April 2016. This is the seasonally adjusted indicator series for each state’s payroll employment, unemployment rate, average hours worked in manufacturing, and wage and salary disbursements.
According to the release, the indexes increased in 39 states, decreased in seven, and remained stable in four.
The states with decreases include North Dakota, Oklahoma, Wyoming, Louisiana, Iowa and Pennsylvania. All share exposure to the oil and gas industry, which has struggled due to low prices.
Texas, while exposed heavily to the energy industry, saw activity increase. Comments recently made by Home Depot’s Chairman and CEO Craig Menear may explain.
"I think all major markets in Texas performed well,” Menear said on a conference call this month. “Texas clearly has diversified their economy, more so over the past few years, which I think is a benefit.”
Washington state remains a stand-out. Seattle is seen as a hub for Silicon Valley related jobs, which continue to be fueled by abundant venture capital.