State, Regional, U.S. Economies Cool Down in Third Quarter
Connecticut’s economy grew 2.7% between July and September, 15th fastest in the country, as the state, regional, and national economies all cooled down from strong second quarter performances.
The U.S. Bureau of Economic Analysis reported Dec. 23 that GDP grew in 37 states, with the national economy expanding 2.3%, down from 6.7% in the second quarter.
“The 2021 third-quarter estimates of GDP by state reflect the continued economic impacts related to the COVID-19 pandemic,” the agency said in a statement.
“A resurgence of COVID-19 cases resulted in new restrictions and delays in the reopening of establishments in some parts of the country. Government pandemic assistance payments to households and business decreased.”
Connecticut posted 5.9% GDP growth in the second quarter—29th best in the country—while the regional economy expanded 7.1%.
Economic growth in New England slowed to 2.6% in the third quarter, with Massachusetts leading the region for the third consecutive quarter at 3.7%—third best in the country and down from 8% in the April-June period.
Rhode Island’s economy expanded 2.2% (down from 7.5% in the second quarter), followed by Maine (1.7%; 5.5%), and Vermont (0.4%; 6.5%).
New Hampshire’s economy contracted 3.3%—after expanding 5.6% the previous quarter—and performed the worst of all states except North Dakota (-3.3%).
“The third quarter GDP numbers are a positive sign for the direction of Connecticut’s economy,” CBIA president and CEO Chris DiPentima said.
“We have moved from the middle of the pack in terms of economic growth to ahead of the national average.
“While there are still persistent issues impacting our state—including a higher-than-average unemployment rate and ongoing supply chain disruptions—there are positive economic indicators.
“For instance, our robust manufacturing industry has rebounded strongly in recent months, leading all sectors for job growth in November with 1,700 new jobs.”
Based on the third quarter numbers, Connecticut’s annualized GDP is $299.8 billion, 25% of New England’s $1.21 trillion economy, and the second largest in the region behind Massachusetts ($637.4 billion).
Connecticut’s finance and insurance industry grew 1.29% to lead all sectors in the second quarter. The sector expanded 0.9% in the region and 0.64% nationally.
Professional, scientific, and technical services grew 0.75%, followed by nondurable goods manufacturing (0.51%), accommodation and food services (0.48%), administrative services (0.45%), healthcare (0.29%), arts, entertainment, and recreation (0.27%), information (0.25%), transportation (0.24%), educational services (0.18%), government (0.18%), management (0.15%), and other services (0.13%).
Retail trade contracted 0.92%, followed by wholesale trade (-0.44%), utilities (-0.36%), construction (-0.34%), durable goods manufacturing (-0.3%), real estate (-0.13%), mining (-0.02%), and agriculture (-0.01%).
Best, Worst States
Hawaii’s economy was the fastest growing in the country in the third quarter, expanding 6% after growing 8.9% the previous three months.
Tourism drove much of Hawaii’s growth in the third quarter, with the accommodation and food services sector expanding 2.57%.
Delaware’s GDP grew 4.7%, followed by Massachusetts, New Jersey (3.7%), and Florida (3.7%).
Louisiana (-2.7%), Wyoming (-1.5%), and Idaho (-1%) filled out the bottom five performing states.
EXPLORE BY CATEGORY
Stay Connected with CBIA News Digests
The latest news and information delivered directly to your inbox.