Oregon is experiencing a slowdown in economic activity, according to the state economist, who provided an analysis of current trends shaping the regional economy. The assessment highlights a cooling labor market, reduced consumer spending, and declining business investment as key factors contributing to the deceleration. n nWhile the state avoided a deep recession, growth has significantly moderated compared to previous years. The economist noted that inflationary pressures, though easing, continue to affect household budgets and business planning. Additionally, higher interest rates have dampened real estate activity and slowed construction projects across urban and rural areas. n nThe manufacturing sector, once a strong contributor to Oregon’s GDP, has seen reduced output due to weaker demand and supply chain adjustments. At the same time, technology firms in the Portland metro area have implemented hiring freezes or modest layoffs, reflecting broader national trends in the sector. n nDespite these challenges, the economist emphasized that Oregon’s fundamentals remain stable. Unemployment remains below the national average, and public sector employment has held steady. There is also cautious optimism around clean energy investments and infrastructure projects funded through federal programs. n nPolicymakers are being urged to focus on workforce development and small business support to stimulate long-term resilience. The outlook suggests that while recovery may be gradual, strategic investments could help position Oregon for future growth. n
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