Second Quarter GDP Report a Mixed Bag for Connecticut
The U.S. Bureau of Economic Analysis’ latest quarterly GDP report is a mixed bag for Connecticut’s economy.
On the positive side, the BEA revised the state’s performance for the first quarter of this year to 4.3%, a significant revision from the initial report of 2.2% GDP growth.
That revision meant Connecticut’s economy was the 13th fastest growing of any state in the first quarter, rebounding after contracting 2.4% in the fourth quarter of 2018.
However, the BEA’s latest quarterly report also revised Connecticut’s overall 2018 GDP growth down from 1% to 0.5%.
The New England states averaged 2.2% growth last year and the U.S. economy grew 2.9%.
Only Wyoming (0.1%) and Delaware (0%) had slower economies than Connecticut in 2018.
Second Quarter Growth
For the second quarter of 2019, the BEA reports Connecticut’s economy grew 1%—fourth slowest in the country.
The New England region averaged 1.3% GDP growth for the quarter while the U.S. economy expanded 2%.
Massachusetts and Rhode Island led the region with 1.5% quarterly GDP growth—34th and 35th in the country—followed by New Hampshire (1.4%), Vermont (1.3%), Connecticut, and Maine (0.6%).
At $284 billion, Connecticut’s annual GDP represents 26% of New England’s economic output, second only to Massachusetts, which accounts for 52% of the region’s $1.13 trillion GDP.
The critical finance and insurance sector led all Connecticut industry sectors in the second quarter, posting 0.38% growth.
Professional, scientific, and technical services expanded 0.37%, with information (0.32%), utilities (0.24%), and management (0.15%) rounding out the top five sectors. Durable goods manufacturing grew 0.07%.
Wholesale trade was the worst performing sector for the quarter, contracting 0.29%. Construction shrank 0.27% and nondurable goods manufacturing declined 0.18%.
Fastest, Slowest Economies
GDP increased in all 50 states in the second quarter of this year.
At 4.7%, Texas had the hottest economy of any state in the quarter, driven largely by its mining and professional, scientific, and technical services sectors.
Wyoming’s economy expanded 4.2%, followed by Alaska (4.1%), New Mexico (4.1%), and Washington (3.2%).
Hawaii’s GDP grew 0.5%, the slowest of any state, with Maine, New Jersey (0.7%), Connecticut, and Kentucky (1%) rounding out the bottom five.
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