Worcester economy stalled in fourth quarter of 2015

Despite a lack of growth in the fourth quarter, the overall economic performance of Worcester increased in 2015, according to the Worcester Economic Index.

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By Sam Bonacci

The Worcester-area economy slowed substantially in the fourth quarter of 2015, according to the Worcester Economic Index (WEI) released by Assumption College Professor Thomas White.

The quarterly economic diagnosis index, which is estimated using Bureau of Labor Statistics data on employment and unemployment for the Worcester metropolitan area, declined by 0.7 percent in the fourth quarter to 109.4 and is not expected to see appreciable growth over the next six months, White said in a release. The model places Worcester’s economic growth during that time in the 0.3 percent to 0.1 percent range.

However, there are positive indications for the economy, with all three local leading indicators -- online help wanted advertisements, new business incorporations and initial unemployment claims -- currently providing positive signals, according to White.

Despite the decline in the fourth quarter, the index was up overall for 2015 by 2 percent.

“The WEI was growing well above 3 percent during the first half of 2015 but slowed down significantly in the latter part of the year,” White said in a statement.

The next Worcester Economic Indicators report will be issued in early May.