CBIA Response to Second Quarter GDP, Personal Income Growth Report

The state’s largest business organization issued the following response to today’s release of the second quarter GDP and personal income growth data by the U.S. Bureau of Economic Analysis.

“Today’s release of the GDP numbers clearly highlights the impact the state’s labor shortage crisis—along with inflation and supply chain bottlenecks—is having on our economy,” CBIA president and CEO Chris DiPentima.

“The finance and insurance and manufacturing sectors, two critical components of our economy, saw some of the biggest declines in the second quarter.

“The performance of those sectors, along with contraction in the construction and real estate sectors—which typically act as early warning signs—is very troubling.

“Equally concerning was Connecticut’s personal income growth in the second quarter, which at 2.2% was last in the country, well behind U.S. average growth of 5.8%.

“That continues a multi-year decline for a key measure of our economic competitiveness. While we still have the second highest personal income in the country, we are heading in the wrong direction.

“These numbers should sound alarm bells for the state’s policymakers and those running for elected office this fall.

“CBIA has proposed a broad package of policy solutions designed to address those factors driving the labor shortage—like the high costs of living and doing business—and transform the state’s economy.

“We cannot ignore our lagging economic recovery any longer. I urge those running for office to pledge their support for those recommendations and get our economy back on track.”

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CBIA is Connecticut’s largest business organization, with thousands of member companies, small and large, representing a diverse range of industries from every part of the state. For more information, please contact Scott Beaulieu (860.244.1929).