Maine’s economy grew sluggishly in the final three months of 2016, expanding just 0.7 percent, making Maine the slowest-growing state in New England and 43rd nationally.

Figures from the Bureau of Economic Analysis suggest that contractions in real estate, rental and leasing activity, along with a decline in manufacturing of non-durable goods – items expected to last less than three years – were the biggest drags on the state’s economy.

Agriculture, forestry, fishing and hunting continued to contribute strong growth to the state’s economy, accounting for 0.46 percentage points of the state’s overall growth. Retailing also performed well, contributing 0.3 percentage points to growth from the third quarter to the fourth quarter last year.

The bureau said Maine’s economic output for the quarter was $59.86 billion, up from $59.5 billion in the third quarter of 2016 and $58.45 billion in the fourth quarter of 2015.

Maine’s growth in gross domestic product was, by far, the laggard in New England. As a whole, the region’s economy grew by 1.9 percent during the quarter, matching the national growth rate. New Hampshire led the way in New England, with a growth rate of 2.4 percent, eighth-fastest in the region. Outside of Maine, Vermont posted the slowest growth in the region, at 1.5 percent, good for 28th nationally.

Texas posted the most robust growth in the country, while Mississippi had the slowest.


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