1. Massachusetts Economic Conditions Yolanda K. Kodrzycki Assistant Vice President and Economist Federal Reserve Bank of Boston Presented to The Massachusetts Joint House and Senate Ways and Means Committee Revenue Hearing Massachusetts State House Boston, MA December 6, 2004

2. Source: Federal Reserve Bank of Philadelphia. Index, each state’s pre-recession employment peak = 1 Page 1 State Economic Activity Indexes MA RI NH VT ME CT Note: The economic activity indexes include four indicators: nonfarm employment, the unemployment rate, average weekly hours worked in manufacturing, and wage and salary disbursements. The trend for each state’s index is set to match the trend for gross state product (available annually). Shaded area represents 10 and 90 percentile boundaries for U.S. states in each month.

3. Page 2 Monthly Employment Change Source: U.S. Bureau of Labor Statistics. United States New England Thousands of Jobs Massachusetts Thousands of Jobs

4. Initial Claims for Unemployment Insurance (Index 1995 = 1) United States Massachusetts Average Weekly Initial Claims Page 5 Source: United States: The Conference Board. New England and Massachusetts: U.S. Department of Labor and Federal Reserve Bank of Boston.

5. Downtown Note: Shaded areas indicate 10 and 90 percentile boundaries for 60 selected metropolitan areas. Source: CB Richard Ellis. Suburban United States Office Vacancy Rates Class A Office Rents United States Downtown Suburban United States Note: Shaded areas represent 10 and 90 percentile boundaries for 60 metropolitan areas. Source: National Real Estate Index - Market History Data. United States Page 6 Boston

6. Personal Income Percent Change from a Year Earlier Total Wage and Salary Disbursements Percent Change from a Year Earlier Note: Shaded area represents the range of values among the eight BEA divisions in each quarter. Source: U.S. Bureau of Economic Analysis. Page 7 United States Massachusetts

7. United States Index (1985 U.S. Average = 100) Oct 2003 Oct 2004 Consumer Confidence Present Situation Future Expectations Consumer Confidence 1985 U.S. Average = 100 USMAUSMAUSMA New England Page 8 Oct 2003 Oct 2004 Source: The Conference Board and Mass Insight. Massachusetts Heeeeeee

8. Index, December 30, 1994 = 100 Source: Bloomberg. Bloomberg Massachusetts Stock Price Index Page 9