Examine the chart above and answer the following questions in at least 200 words.
The current status of new Hampshire's economy is strange it shows an increase in private housing but a steady decrease in employment. with New Hampshire residents losing jobs and the current high buying rate for houses it looks like we’re going into recession. When New Hampshire goes into recession employment rates lessen which indicates it could be approaching soon as it has done in years past. Almost every time the national economy goes into recession New Hampshire does except for once. New Hampshire also has a lag time of about six months when it comes to the national recession. In 2001 and 2008 NH followed the national economy despite trying to manage it with laws and tax cuts. Usually it takes time for New Hampshire's employment rate to drop below 0. The top three industries in New Hampshire are retail trade, real estate, and health care. Since 2012 retail trade has become less associated with the national economy unlike health care. If a recession is highly likely Grappone nation monitor local industry impacts as well as inventory. Their employee payroll is small so no worries there, but as unemployment drops significantly, they will struggle to sell cars to their customers who don’t have fixed incomes.
Question to the businesses
A regional economic cycle is not perfectly synchronized with its national counterpart, although it tends to move up and down with the national economy. In addition to the broader national economy, two other factors influence a regional economy: the national cycle of its most important industries and its internal growth cycle associated with construction swings. There are two different perspectives to consider in analyzing a regional economy: when a company sells into a distinct local market and when a company produces in a local market and sells into a national or global market.
Please, discuss how the regional economy affects your business and what you do in response.
Response from businesses
| Business | Response from Business |
|---|---|
| Graponne | We are a regional business, so we are more impacted by what is going on in northern New England. From my perspective, the ’08-’09 recession was not as bad in New England as was the ’90-’92 downturn. New Hampshire was hit much harder in the early ’90’s. Many of NH’s largest banks failed in 1992, |
| Bank of New Hampshire | Our primary operating area is NH, and to a lesser extent all of New England, so regional economic cycles are important. We monitor economic data on the state and regional level – Fed in Boston puts out excellent information – and respond accordingly, |
| Comptus | We have no direct regional sales. 50%+ of our revenue is from International sales. Almost all domestic sales are through large distributors, so we have very limited visibility to regional activity. |