According to the annual state expenditure report of the National Association of State Budget Officers (NASBO), there was an increase in US state spending – a first for the 2018 fiscal year. Industries most impacted were health and transport (6.5% possibly due to an increasing focus on infrastructure throughout the nation) but in every category there was growth. There was a 6.2 percent hike in general fund revenue during the same time frame.
Executive director of NASBO, John Hicks explained:
“The fiscal 2018 data presents a slightly improved fiscal situation than the prior two years. We’re seeing a slight increase in the growth of spending both from total spending and states’ own funds.”
In addition, there was a more substantial increase in federal fund state spending as compared to state generated revenue spending. And activity within the manufacturing industry did not meet expectations, dropping to its nadir since April 2017. According to Timothy Fiore, Chair of the ISM Manufacturing Business Survey Committee:
Demand remains moderately strong, with the New Orders Index easing to below 60 percent for the first time since April 2017, the Customers’ Inventories Index remaining low but improving, and the Backlog of Orders Index remaining steady. Consumption softened, with production and employment continuing to expand, but at lower levels compared to September.”