Examine the chart above and answer the following questions in at least 200 words.
Place your answers here
The status of New Hampshire’s economy has seemingly plateaued for the moment. I don’t believe that we are in a recession currently. But I do think that we could be heading towards a recession. The charts indicate that the New Hampshire economy is in a weird spot. Looking at both the charts giving in this lesson we see that the private housing numbers are going up, while the employment rate is decreasing. When doing a little bit of research on the U.S. and New Hampshire economies during a recession I found that New Hampshire has had a recession at the same time as the U.S. economy. There was one time where the New Hampshire economy was close but didn’t have a recession. I would think that this is a rare occasion too. With that, New Hampshire looks to lag a few months behind when it comes to the recessions when in comparison to the U.S. economy. As for the top three industries in New Hampshire, those are Real Estate, Retail Trade, and Health Care. These have changed within the last decade. Real Estate has become the best industry in New Hampshire. Health Care looks to be in 2nd place while still on top, Retail Trade is on a slow decline and still in 3rd place. When looking at a recession for Bank of New Hampshire they should first start off with a plan. This plan should include some sort of automation for efficiency purposes, look into investment plans, do some strategic hiring, etc.
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. |