Information Technology and Growth in the Twelfth District

FRBSF Economic Letter #2001-32 dated November 9, 2001

This just-released Economic Letter tracks information technology (IT) sector growth and slowing in the Federal Reserve's 12th District, and examines its impact on the District's economy. According to the author, the 12th District economy (comprised of the nine westernmost states) has slowed substantially in recent months, as the downturn in technology has progressed and spread to both IT manufacturing and services firms.

Mary Daly, Senior Economist
Federal Reserve Bank of San Francisco

Now available on the Internet at:
www.frbsf.org/publications/economics/letter/2001/el2001-32.html

Over the past several years, robust growth among information technology (IT) firms fueled gains in output, employment, and earnings and helped the western economy expand more rapidly than the rest of the nation. Recently, however, economic conditions among technology firms in the U.S. have weakened considerably. As a result, employment growth in the west has slowed substantially, converging with the rest of the U.S. Business reporters who are researching the impact of technology growth in the western region and are seeking neutral, third-party input to bring perspective to their stories may wish to contact Daly directly at (415) 974-3186 or Mary Daly.