Third of US metro areas to record negative or stagnant economic growth

Third of US metro areas to record negative or stagnant economic growthAccording to a new report by mayors, the economies of a third of all metropolitan areas will record native or stagnant economic growth during the year, which is worse than 2012.

The report released today by the Washington-based U. S.  Conference of Mayors showed that economies in 119 will retreat or stay the same out of the 363 areas compared to 73 in the previous year.  The economic growth was affected by automatic federal spending cuts known as sequestration as well as a half month partial government shutdown.  The report also said that the number of cities is still recovering from the recession.

Scott Smith, mayor of Mesa, Arizona, and group president, in a statement, "We cannot afford manufactured crises like sequestration, the debt ceiling battle and the federal government shutdown.  It is important that Washington not return to dysfunction, which has real economic consequences in our cities."

Two-thirds of cities and surrounding suburbs are expected to record growth, according to the report prepared by IHS Global Insight.  Midland, Texas recorded the highest growth with 7.3 percent while Odessa, Texas followed at 6.4 percent.