Connecticut’s economy surged in the third quarter of 2016, keeping pace with strong regional and national economic output.
The U.S. Bureau of Economic Analysis reported the state’s gross domestic product grew 3.6% for the quarter, driven primarily by the performance of the insurance and finance sector.
Eight of the state’s 11 industry sectors saw growth ranging from 0.02% to 1.13% during the quarter.
Mining was flat, while construction shrank 0.09% and non-durable goods manufacturing output declined 0.02%. Durable goods manufacturing grew 0.38%.
Connecticut’s economic output grew 0.9% in the first quarter and 1.6% in the second three months of 2016.
“We’re certainly encouraged by the economy’s performance over the first three quarters of 2016,” said CBIA economist Pete Gioia.
“This is really the first time since the recession began in 2008 that we’ve seen sustained GDP growth across multiple quarters.”
Connecticut’s economic growth has been sluggish over the last decade, hitting a post-recession peak of 1.2% in 2014 before posting a modest 0.6% increase the following year.
“There are a lot of reasons for optimism in these numbers,” Gioia said.
“Increasing our focus on addressing the state’s fiscal issues and improving our business climate will create a path for future strong growth.”
Addressing the state's fiscal issues and improving our business climate will create a path for future strong growth.
Finance and insurance, wholesale trade, and information were the leading contributors to the U.S. economy in the third quarter.
Finance and insurance grew 9% (1.13% in Connecticut), contributing to growth in every state and the District of Columbia.
Maine was the strongest performer of the six New England states, posting quarterly GDP growth of 4.8%.
New Hampshire’s economy grew 3.9%, followed by Massachusetts (3.8%), Vermont (3.7%), Connecticut, and Rhode Island (3.6%).