UMass, in its quarterly journal MassBenchmarks, reported that the state’s economy grew at 2.3 percent annual rate in the fourth quarter of 2011, down from 3.2 percent in the third. The US economy expanded at a 2.8 percent annual rate in the fourth quarter, up from 1.8 percent in the third.
It is the first time in a year that the US economy outpaced the state’s. In general, Massachusetts has recovered from the recession faster than the nation, in large part because the state’s economy is driven by its technology sector and business spending.
Global demand for technology and strong business spending on equipment and software helped drive a burst of growth in the first half of 2011, as the state added 40,000 jobs. Hiring was flat in the second half as demand for information technology products peaked.
“To the extent that businesses accelerated their hiring during the first half of the year, they may have shifted employment and income growth [away] from the second half,’’ said Alan Clayton-Matthews, a Northeastern University economics professor who analyzed data for the UMass report.
Last quarter’s economic slowdown was signaled in several areas, including the pace of job growth and income growth, which both declined in the last half of the year, according to the report. The state unemployment rate - 6.8 percent in December - is still significantly better than the national rate of 8.5 percent.
Analysts also pointed out a few bright spots: First-time claims for unemployment benefits dropped to their lowest level since April 2008, and spending grew, especially automobile purchases.
The UMass report forecasts the economic growth will accelerate in the first half of this year, to a 4 percent annual rate by the second quarter.
“We have confidence that the Massachusetts economy will continue to grow at a strong pace moving forward,’’ said Greg Bialecki, state housing and economic development secretary.
