Tags: wallethub | state | economy | alaska | washington

WalletHub: Wash. Strongest US State Economy, Alaska Weakest

WalletHub: Wash. Strongest US State Economy, Alaska Weakest

By    |   Monday, 03 June 2019 05:06 PM EDT

A recent study by WalletHub examined the economies of all 50 states and ranked them from strongest to weakest.

Washington state tops the bill while Alaska was found to be the worst, according to WalletHub.

“U.S. economic growth depends heavily on the performance of individual states. But some contribute more than others. California, for instance, blossomed in 2017 as the fifth largest economy in the world, boasting a GDP larger than that of countries like the U.K., France and India. Meanwhile, Alaska, a state with valuable natural resources, is struggling with the highest unemployment rate in the country, at 6.5%,” reports WalletHub.

“In order to determine which states are pulling the most weight, WalletHub compared the 50 states and the District of Columbia across 28 key indicators of economic performance and strength. Our data set ranges from GDP growth to startup activity to share of jobs in high-tech industries. Read on for our findings, expert insight from a panel of researchers and a full description of our methodology,” said the researchers.

Here's a look at the best state economies in the U.S.:

  1. Washington
  2. Utah
  3. Massachusetts
  4. California
  5. Colorado
  6. District of Columbia
  7. Idaho
  8. Oregon
  9. New Hampshire
  10. North Carolina

Here's a look at the worst state economies in the U.S., with the worst listed first:

  1. Alaska
  2. Louisiana
  3. Mississippi
  4. Hawaii
  5. West Virginia
  6. Arkansas
  7. Kentucky
  8. Wyoming
  9. Rhode Island
  10. Maine

However, all state economies stand to weaken as a national survey showed on Monday that growth in U.S. manufacturing activity slowed in May to its weakest pace in over two years as factory managers raised concerns about a trade war between the United States and China.

The Institute for Supply Management said its U.S. Manufacturing Purchasing Managers Index declined to 52.1 from 52.8 in April, hitting the lowest level since October 2016.

A reading above 50 indicates growth. Wall Street economists polled by Reuters expected the index to rise to 53.

A separate survey on U.S. purchasing manager sentiment by IHS Markit also pointed to slowing growth in U.S. factory activity in May.

The reports suggest that risks to the U.S. economy are rising due to a slowing global economy and U.S. President Donald Trump’s efforts to overhaul America’s relationship with its major trading partners, Reuters explained.

Trump has ordered sharp tariff increases on a host of Chinese imports in 2018 and this year, while on Friday he threatened to hike tariffs on all Mexican imports unless Mexico stems the flow of unauthorized immigrants into the United States. Many U.S. factories depend on Mexican suppliers for goods assembled in America.

U.S. trading partners including China and Mexico have retaliated against Trump’s tariffs with higher taxes on U.S. exports. This is also putting pressure on U.S. factories.

“The sector can’t thrive when it’s being hit by new taxes at random every few weeks,” said Ian Shepherdson, chief economist at Pantheon Macroeconomics. “This isn’t about macro, it’s about the whims of a president who understands very little about how the economy actually works.”

Trump says he wants to bring more manufacturing jobs to America and says trading partners have been taking advantage of the country.

ISM’s factory employment index ticked higher to 53.7 after April’s reading of 52.4. The index has fallen by 11% since October 2017.

Economists generally expect rising tariffs will hit corporate profits and lead to higher prices for U.S. consumers.

The ISM survey was taken before Trump threatened new tariffs on Mexico starting next month. The threat prompted a broad outcry from U.S. businesses.

Global trade tensions ratcheted higher throughout May after Trump ordered tariffs on billions of dollars of imported goods from China to rise to 25% from 10%, and progress toward a trade deal between the world’s two largest economies ground to a halt.

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A recent study by WalletHub examined the economies of all 50 states and ranked them from strongest to weakest.
wallethub, state, economy, alaska, washington
Monday, 03 June 2019 05:06 PM
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