Delaware Economy Still Shakey, Forecasting Firm Says

Sep 12, 2013

Credit Don Rush

An economic forecasting firm says that Delaware is the only state in the country still facing the potential of falling back into a recession.

That harsh picture comes from Moody’s Analytics after reviewing the state’s employment figures, housing market and industrial production at the end of four years of recession.

The jobless rate in Delaware has stayed at 7.4 percent which matches the national average which has been declining from around 10 percent over the last five years.

Seven Cochrane managing director of Moody’s Analystics cited uncertainty in Delaware’s financial sector and the slowness of the recovery in the housing sector among other factors slowing down the First State’s recovery.

He noted that because Delaware’s economy is so small it can be affected by a single industry.

Meanwhile, Governor Jack Markell’s staff questioned Moody’s methodology and pointed to trends that suggest growth including a number of announcements by financial