{"id":367199,"date":"2010-02-26T15:27:16","date_gmt":"2010-02-26T20:27:16","guid":{"rendered":"http:\/\/blogs.wsj.com\/economics\/2010\/02\/26\/gdp-report-points-to-concerns-about-state-and-local-governments\/"},"modified":"2010-02-26T15:27:16","modified_gmt":"2010-02-26T20:27:16","slug":"gdp-report-points-to-concerns-about-state-and-local-governments","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/367199","title":{"rendered":"GDP Report Points to Concerns About State and Local Governments"},"content":{"rendered":"

Strained budgets in states<\/a> and local governments don\u0092t just affect the area residents — they can cause a drag on the whole U.S. economy.<\/p>\n

Spending from state and local governments fell at a 2% annual rate in the fourth quarter, a revised gross domestic product report<\/a> showed today. That\u0092s much worse than the 0.3% drop in the original estimate or the 0.6% decline in the third quarter. And upcoming quarters could show similarly bad numbers as revenues continue to fall.<\/p>\n

\u0093These administrators are likely to have to fire more workers and obviously cut spending,\u0094 said BNP Paribas<\/strong>\u0092 Anna Piretti<\/strong>. \u0093That would have a very large impact.\u0094<\/p>\n

Piretti noted that state and local governments are roughly the same size as the manufacturing sector — the area that\u0092s been the main impetus for economic activity so far — and could seriously damp growth.<\/p>\n

\u0093If you see substantial weakness there it would offset the strength we\u0092re seeing in manufacturing,\u0094 Piretti said.<\/p>\n

It\u0092s just another reason for analysts to worry that the economy could remain fragile as long as consumers aren\u0092t contributing more to growth.<\/p>\n

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Strained budgets in states and local governments don\u0092t just affect the area residents — they can cause a drag on the whole U.S. economy. Spending from state and local governments fell at a 2% annual rate in the fourth quarter, a revised gross domestic product report showed today. That\u0092s much worse than the 0.3% drop […]<\/p>\n","protected":false},"author":850,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-367199","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/367199","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/850"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=367199"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/367199\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=367199"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=367199"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=367199"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}