Federal Bank: Ohio's Economy Could Contract Slightly in the Next Six Months

Ohio is one of six states with economies expected to shrink over the next six months, according to the Federal Reserve Bank of Philadelphia.

click to enlarge Federal Bank: Ohio's Economy Could Contract Slightly in the Next Six Months
Federal Reserve Bank of Philadelphia

Ohio's economy could contract slightly over the next half of a year, according to projections from the Federal Reserve Bank of Philadelphia. 

The bank Nov. 1 issued its economic predictions for states, which show Ohio's economy shrinking by .04% over the next six months, even as the nation's economy grows by 1.48% — a slower rate than in past months. 

The central bank uses indicators like new housing permits for buildings with one to four units, new jobless claims, the difference between short-term and long-term borrowing rates and other data to arrive at its projections. The bank, using data on those indicators through September of this year, predicts growth in 43 states, with Ohio joining Michigan, Pennsylvania, Rhode Island, West Virginia, Wisconsin and Wyoming as the only states where economic growth is expected to remain flat or decrease.  

State lawmakers and Ohio Gov. Mike DeWine drew up a budget this year that assumes the state's economy will grow at a rate of 1.35 percent next year and the year after. 

Ohio's unemployment rate remains low at 4.2 percent. But the state has lost more than 11,000 jobs since January, and unemployment claims have increased for two months in a row. 

State officials say they're not worried, pointing to the state's low unemployment rate and tax revenues that came in more than $25 million above projections last month. 

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