The New England region’s economic activity continued to improve year-over-year in the second quarter of 2016, albeit at a slower rate than seen in previous quarters, according to the latest New England Economic Indicators report released by the Boston Fed. The quarterly publication provides current and historical economic data for the six states comprising the Fed’s First District, large metropolitan areas in the region, New England as a whole, and the United States.

“In New England, most economic indicators suggest continued growth,” said Darcy Saas, deputy director of the New England Public Policy Center at the Boston Fed, which publishes the quarterly summary of regional economic indicators. “The regional unemployment rate continues to fall and job growth in New England continues, but at a slower pace than we’re seeing nationally.”  

Despite a modest reduction in job growth in May 2016, with about 15,000 fewer people employed than in April, New England experienced moderate job growth year-over-year. Between May 2015 and May 2016, the region’s unemployment rate declined 0.6 percentage points, to 4.4 percent. Five of the six New England states— Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont—continued to see unemployment rates fall. However, Connecticut saw a 0.1 percentage point increase to 5.7 percent unemployment, making it the state with the highest unemployment in the region.

During the same time period, all six New England states experienced job growth, ranging from 1.5 percent growth in Massachusetts to 0.25 percent growth in Rhode Island – but lagged behind the national pace of job gains of 1.7 percent. The fastest growing sector in New England during this time period is construction, with a 4.6 percent increase in the region compared to 3.4 percent growth nationally.

Other economic indicators, including housing prices, continued to post increases, according to the report. Between the first quarter of 2015 and the first quarter of 2016, home prices increased 5.5 percent nationally and 3.4 percent regionally.

Five of the six New England states reported positive house price growth year-over-year during this time period, but trailed the national rate. Massachusetts led regional home price gains, up 5.4 percent, but home price growth was flat in Connecticut.

The full second quarter 2016 New England Economic Indicators report is now available. The next summary report will be published following the third quarter of 2016.