Fairfield County's economy grew in 2012, if slowly, as metro Hartford and New London contracted and New Haven stagnated, according to a report released Tuesday on GDP trends by metro area.
Across all 381 of the nation's urban areas, the average growth was 2.5 percent in 2012, after adjusting for inflation. In Fairfield County, it was 0.4 percent.
The New London region continues to languish in recession, in its third year of contraction. Its economy shrank by 2.2 percent, and only 15 urban areas in the country did worse. The New Haven area neither grew nor shrank. And the Hartford metro area, whose economy is nearly as large as Fairfield County, shrank by 0.4 percent.
Why is Connecticut lagging? The data, which is subject to revision as more complete information comes into the Bureau of Economic Analysis, suggest two culprits: lower sales and employment in financial services, including insurance; and government cutbacks that are more severe than the national trend.
Ed Deak, who analyzes the Connecticut economy for the New England Economic Partnership, said financial services are unlikely to recover much in 2013, either. "Dodd-Frank provisions are going to make it much more difficult to allow the hedge funds engage in wild and woolly activities," he said.
But he said government job cuts are coming to a close, which will help 2013's GDP numbers.
"It's still not a great year, and it's not a year that puts Connecticut back on its feet economically with a strong growth path," he said.
In Greater Hartford, declines in financial activities cut 0.71 of a point from GDP in 2012, while nationwide, financial activities contributed 0.45 of a point. Government cutbacks subtracted 0.28 of a point in Greater Hartford, and just 0.04 of a point nationwide.
New Haven had a drag of the same size from public spending cutbacks, and New London, which lumps in casinos with government, had a 0.35-point decline.
Nationwide, durable goods manufacturing was the biggest contributor to economic growth, contributing 0.52 of a point. Manufacturing grew faster than that in New Haven and New London, the data show.
The strongest segment in Fairfield County was information, which includes broadcasting, cable companies, newspaper, magazine and book publishing, movie making, software publishing and telecommunications. That category contributed 0.27 nationally, and grew four times faster in Fairfield County.
Source: http://www.courant.com/community/hartford/hc-gdp-hartford-fairfield-20130917,0,4044981.story?track=rss
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