U.S. State Deficits Will Moderate Economic Growth

ByJohn S. McClenahen Few executives and economists are talking about it. But, predicts Susan Hering, an economist at UBS Warburg, New York, spending cutbacks by state governments in the U.S. "will continue throughout the coming year and will moderate the expansion." She figures that 46 of the 50 state governments have budget deficits. Among recently announced actions, New Jersey's government said on Jan. 2 that spending would be frozen for some programs and Mitt Romney, Massachusetts' new governor, pledged to cut spending to help eliminate a $3 billion budget deficit.