Economic Growth by State - United States
Paul Young
Experience Senior Financial Planning, Analysis and Reporting SME seeking P/T or F/T job.
Southeast (SC, NC, FL, GA, VA)
South Carolina led all states in economic growth at 4.9% y/y, with both North Carolina and Florida topping 4.0% (at 4.4% and 4.2% respectively). Retail trade was the largest growth contributor in Florida and to Georgia’s 3.5% and Virginia’s 3.0%, and the second largest contributor in the Carolinas. Nondurable manufacturing was the leading industry in South Carolina (e.g. food products), and it was finance and insurance in North Carolina. South Carolina also led all states in population growth at 1.8% y/y, followed closely by Florida at 1.7%, with the region having two others (North Carolina and Georgia) in the Top 10 (Chart 2). Strong population growth not only supports retail trade, but lifts activity in real estate and rental, health care, and construction. In South Carolina, for example, these were the next largest contributors to growth (3rd, 4th and 5th, respectively).
West (UT, ID, WA, CA, NV)
Apart from Idaho, retail trade was the second-largest contributor to growth in the other four states, but their largest drivers mostly differed. In Utah, the government sector barely edged out retail in contributing to the 4.8% y/y total. In both Washington and California, the information industry was the largest contributor, and it was accommodation and food services in Nevada. These three states grew 4.9%, 4.2% and 3.9%, respectively. A (temporary) rebound in agriculture output was the dominant driver for Idaho’s 4.8% total, pushing down the next ones in line, which were (in order): health care, construction, and retail trade. For both Utah and Idaho, their silver- and bronze-medal-winning GSP performances were aided by Top 10 population growth (Chart 2 again) and all the sectors that ride on its coattail. (Think government services and health care, retail trade, construction, along with real estate and rental.) Finally, when information is a leading industry, the vigor tends to spill over into professional, scientific and technical services, which was the case in Washington and California.
Midwest (IN, WI, OH)
Indiana is the state most exposed to total manufacturing, and the booming nondurable segment was the leading industry contributing to its 4.0% y/y growth; it actually accounted for about half of it (with pharmaceuticals a key element). Even durable manufacturing managed to eke out some growth despite contracting slightly on a nationwide basis. The state is garnering support from investments in the clean energy space (EVs, batteries). Retail trade was the second largest contributor to growth in Indiana, but it was top line in driving Wisconsin’s 3.3% and Ohio’s 2.9% gains. For Wisconsin, rebounding agricultural output was next in line, followed by nondurable manufacturing (with food products a large segment). Nondurable manufacturing was second for Ohio (with plastics and rubber products an important part).
South Central (LA, TX, AR)
Nondurable manufacturing was the dominant driver of Louisiana’s 4.0% y/y growth and Texas’ 3.9%, with petroleum products greasing the gains. For the former state, this industry contributed around half the total, with retail trade following construction as the next largest contributors. Despite a pullback in mining output nationally, domestic crude oil production hit a record high in 2024Q2 (and in Q3) which pushed mining output’s contribution to Texas’ growth just behind retail trade. The Lone Star state also scored third in population growth (1.6% y/y officially) which provided a lift to the typically affected industries, particularly construction. The latter was already booming with the state garnering the largest slice of announced investments related to the Biden Administration’s industrial polices promoting investment in semiconductors and clean energy. Arkansas’ 3.2% growth was led by retail trade and nondurable manufacturing. Food products were a big part of the latter.
Northeast (RI, ME, NH, MA)
Rhode Island was the only state in the Top 10 or 20 growth rankings that didn’t have retail trade or nondurable manufacturing as the first- or second-largest contributor to growth. The leading industry for the Ocean State’s 3.9% y/y result (which matched much larger California and Texas) was finance & insurance, followed by health care & social assistance (retail was 3rd). In Maine, finance & insurance was also a major growth driver, second only to retail trade in promoting 3.3% growth. For New Hampshire’s 3.0%, professional, scientific & technical services was the second-largest contributor behind retail. Massachusetts’ 2.9% growth was led by the information sector with professional, scientific & technical services (not surprisingly) in tow, just behind retail trade.
In the Top 20 ranking, the final four states (VA, NH, MA, OH) posted growth rates at or a bit below the 3.0% national average. They would have still topped the U.S. median pace of 2.6%. The average metric was skewed higher by the fastest growth rates being posted by more of America’s largest states. Nearly 40% of average growth was driven by just three states: Florida (4th largest state economy), California (#1) and Texas (#2). Given this skew, our map of state growth rankings shows a massive middling middle. Seventeen other states (not in the Top 20) posted growth in the 2% range, which is still a respectable result. Only 13 states were below the 2% mark.
In conclusion, U.S. economic growth was robust over the past year, pushed by very strong growth among a group of states that were dispersed across the country. The dispersion reflected the fact that ubiquitous industries such as retail trade and nondurable manufacturing were the leading sectors. This also allowed a majority of states to still post respectable growth rates.
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Paul is a former IBM Customer Success Manager that has deployed over 300 data and AI solutions across industry and geographies for the past 8 years. Paul is a Financial Planning, Analysis, and Reporting SME working with data including integration of macro and micro indicators as part of the integrated business planning and reporting cycle.
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Seeking employment - https://www.dhirubhai.net/posts/paul-young-055632b_hi-all-linked-in-followers-and-contacts-activity-7199365291288506369-qGVf?utm_source=share&utm_medium=member_desktop
Stock Market – Australia – October 4, 2024 - https://www.dhirubhai.net/pulse/stock-market-australia-october-4-2024-paul-young-ibghc/
Stock Market – Canada – October 4, 2024 - https://www.dhirubhai.net/pulse/stock-market-canada-october-4-2024-paul-young-yoy3c/
Stock Market – United States – October 4, 2024 - https://www.dhirubhai.net/pulse/stock-market-united-states-october-4-2024-paul-young-ibj1c/
Monthly Report – United States – September 2024 -? https://www.dhirubhai.net/pulse/monthly-report-united-states-september-2024-paul-young-1ktmc/
Monthly Report – Canada – September 2024 - https://www.dhirubhai.net/pulse/monthly-report-canada-september-2024-paul-young-atqnc/
Monthly Report – Australia – August 2024 - https://www.dhirubhai.net/pulse/monthly-report-australia-september-2024-paul-young-92soc/
Monthly Report – Ontario – September 2024 - https://www.dhirubhai.net/pulse/monthly-report-ontario-september-2024-paul-young-emxcc/
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