BOSTON (AP) – For the second straight year, Massachusetts ranked first in the nation in a Boston-based study that measures economic competitiveness based on ability to generate income and promote growth.

Maine rose to No. 35 in the rankings from No. 36 the previous year. New Hampshire was No. 2. Connecticut finished 20th. Rhode Island was 41st, according to the study.

The fifth annual report, released Friday by Suffolk University’s Beacon Hill Institute, said Massachusetts’ strengths across a broad range of economic indicators earned it the top spot again, despite the Bay State’s recent population decline and slow job growth.

The report’s authors cited the state’s strong technology base, the quality of its work force and its generous support for new business ventures. Those strengths offset weaknesses in the state’s infrastructure and in its environment.

“This year’s report should go a long way toward dispelling recent, gloomy assessments of the state economy,” David Tuerck, Beacon Hill Institute’s executive director, said in a news release. “Looking at just one or two economic indicators can, as we see, prove misleading.

“Despite slow job growth and population loss, Massachusetts continues to be an attractive place to live and work,” Tuerck said.

The study’s authors define competitiveness as “the policies and conditions that ensure and sustain a higher level of per capita income and its continued growth.” The report assigns 42 variables to eight categories: government and fiscal policy, security, infrastructure, human resources, technology, business incubation, openness and environmental policy.

The study gave Massachusetts low rankings for infrastructure because of its traffic congestion (second worst in the nation), the fourth highest electricity prices in the nation and fourth highest housing costs.

The state fared poorly on the environmental ranking because it had the third worst ranking for carbon emissions per 1,000 square miles. Tuerck said poor environmental quality effects competitiveness, because “one of the things that makes a state attractive to workers and investors is the quality of its environment.”

The study cited the Granite State’s highly educated workers, low crime, ability to export products and services, and improvement in government and fiscal policy relating to economic strength.

Rounding out the top 10 states, in order, were: Utah, Colorado, Nebraska, North Dakota, Washington, Alaska, Maryland and Minnesota.

The lowest-ranking state was Louisiana, followed by Mississippi (49th), Arkansas (48th), West Virginia (47th), Indiana (46th) and Hawaii (45th).

AP-ES-12-29-05 1637EST