Montana posts strong economic growth in Q3
Source: Great Falls Tribune
WASHINGTON — Montana’s economy grew a strong 3.5 percent in the third quarter of 2015, the seventh-best showing in the nation, the U.S. Commerce Department reports.
The state benefited from its heavy dependence on farming and outdoor activities, with agriculture, forestry, fishing and hunting contributing 1.8 percentage points in gross domestic product during the period. Montana also posted strong growth in construction, retail trade, health care, and real estate.
“It certainly bodes well for Montana that the economic growth was diversified across numerous sectors,” said Jeremy Johnson, associate professor of political science at Carroll College in Helena. “The more that you can diversify your economy, you tend to be in a stronger position to weather the storm and attract outside investment.”
Montana trounced the nation’s overall 1.9 percent GDP increase in the third quarter. North Dakota, which had experienced booming growth when oil prices were high, has now been battered by the sharp drop in the commodity. Its economic growth fell 3.4 percent during the period, the worst in the country.
Johnson said the oil slump in North Dakota probably had a negative impact on the eastern part of Montana, though how much is hard to estimate.
Montana, the third-largest producer of barley and wheat with a large presence in cattle, has been buffered in part by its heavy dependence on agriculture. Mitch Konen, a malt barley grower from Fairfield, said the third-quarter was strong for many of these commodities.
“We were doing pretty good, agriculture as a whole, until about that time when it started that downtrend coming out of the third quarter,” he said. “We’ve been bouncing off the bottoms ever since then.”
Contact Christopher Doering at [email protected] or reach him at Twitter: @cdoering