Economic slowdown hits majority of metro areas

The economic slowdown of 2008 impacted nearly all metropolitan areas, including Springfield, according to statistics released Thursday by the U.S. Bureau of Economic Analysis.

According to the BEA, 60 percent of metro areas saw economic growth either slow down, stop or shrink in 2008. Real growth in gross domestic product slowed in 220 of the nation's 366 metropolitan areas, driven by downturns in construction, manufacturing, finance and insurance. Real GDP actually declined in 111 MSAs.

For the Springfield area, total GDP grew by 2.7 percent from 2007 to 2008, down from 4.6 percent growth from 2006 to 2007. Springfield GDP also grew by 4.6 percent from 2005 to 2006.

Of the BEA's eight geographic regions, three were especially hard hit. The Great Lakes region contracted and the Southeast slowed to no growth, both driven by declines in construction and manufacturing, while the Southwest experienced the largest slowdown in growth rates, caused by declines in nondurable goods manufacturing.

The hardest-hit MSAs were in the areas that saw the biggest increases in housing prices in previous years: Arizona, California, Florida and Nevada. Specifically, the Los Angeles, Miami, Phoenix and Reno metro areas were hammered by drops in housing prices and home construction.

The areas that did see growth - such as Grand Junction, Colo., where GDP rose 12.3 percent - were boosted by the natural-resource and mining industries.