According to Moody’s Analytics, economic growth is now evident across most of the country. On a handful of small metropolitan areas is in recession, and each of them is constrained by a unique feature such as an extremely intense reliance upon federal spending or a single product. Income growth continues to be strongest in the West, where expanding technology industries pay high wages.
Florida and the Southeast are also experiencing improving income growth as in-migration accelerates and manufacturing ramps higher. Rapid declines in oil prices will produce new dynamics for regional economics, and on the whole the impact is a net positive. This is particularly true in the Southeast and Southwest, where gasoline expenditures represent a higher fraction of personal income. Manufacturers in the Midwest and Southeast also stand to gain due to lower input costs.
Our region of the country, the Northeast, stands to benefit as well since energy costs here are much higher than average. According to Moody’s, tourism will be among the major beneficiaries, and will be spending more freely in the northeast, helping to boost the economies of New York, Boston, Philadelphia, Washington and Baltimore.
