State Posts Third Consecutive Quarterly GDP Growth
Connecticut’s economy grew 2.1% in the third quarter of 2019, the third consecutive period of growth for the state.
The U.S. Bureau of Economic Analysis’ latest GDP report shows Connecticut’s economy grew the 25th fastest in the country.
The six New England states also averaged 2.1% growth for third quarter, as did the United States economy.
Connecticut’s GDP grew 4.3% in the first quarter (13th fastest) and 1% in the second three months of the year (fourth slowest) after growing just 0.5% in 2018.
New Hampshire and Massachusetts led the region in the third quarter as the economies of both states expanded 2.2%.
Maine’s GDP grew 2.1%, followed by Connecticut, Vermont (1.8%), and Rhode Island (1.6%).
At $287.6 billion, Connecticut’s economy represents 25% of New England’s annual output, second only to Massachusetts, which accounts for 52% of the region’s $1.143 trillion GDP.
Nondurable goods manufacturing led all state industry sectors in the third quarter, posting 0.71% growth.
Retail trade grew 0.39%, with professional, scientific, and technical services (0.37%), information (0.36%), and wholesale trade (0.3%) rounding out the top five sectors. Durable goods manufacturing grew 0.2%.
The critical finance and insurance sector was the state’s worst performing sector for the quarter, contracting 0.55%.
Utilities shrank 0.27%, followed by construction (-0.15%), government (-0.04%), and transportation and warehousing (-0.01%).
On New Year’s Eve, the Federal Reserve Bank of Philadelphia issued a report warning that Connecticut was one of nine states at risk of economic contraction over the next six months.
The Fed projects the state’s GDP will decline 0.13%, while forecasting that the country’s economy will grow 1.4% through June.
West Virginia, Montana, Oklahoma, Pennsylvania, Delaware, New Jersey, Vermont, and Kentucky were the other states the Fed said were at risk.
“I think it’s accurate. I personally expect the state to contract unless it gets its job numbers up,” said CBIA economic adviser Pete Gioia.
“We’re growing and replacing manufacturing jobs, which is good, but we’re much weaker at replacing financial services jobs, which pay well.
“I think we have a very fragile economy.”
Connecticut has added just 2,800 jobs—0.2% growth—in the 11 months through November 2019, well below the New England average of 0.9%.
Job growth across the U.S. averaged 1.4% in 2019.
Fastest, Slowest Economies
GDP increased in 49 states in the third quarter of 2019.
Texas continued to lead the country, posting 4% growth driven by the state’s nondurable goods manufacturing, retail trade, and mining sectors.
Utah (3.2%), Washington (3.1%), Louisiana (2.9%), and Alabama (2.9%) rounded out the quarter’s top five states.
Delaware’s economy (0% growth) was the slowest of any state, followed by Hawaii (0.4%), West Virginia (0.5%), New York (0.5%), and Maryland (1%).
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