Gross Domestic Product by Metropolitan Area, 2015
Professional and Business Services Led Growth Across Metropolitan Areas in 2015
Real gross domestic product (GDP) increased in 292 metropolitan areas in 2015, led by growth in professional and business services; wholesale and retail trade; and finance, insurance, real estate, rental and leasing, according to statistics on the geographic breakout of GDP released today by the Bureau of Economic Analysis. Collectively, real GDP for U. S. metropolitan areas increased 2.5 percent in 2015 after increasing 2.3 percent in 2014.
- Professional and business services contributed 0.61 percentage point to U.S. metropolitan area real GDP growth in 2015. This industry contributed to growth in 293 of the nation's 382 metropolitan areas. Growth in this industry accounted for more than half of real GDP growth in 32 metropolitan areas, and contributed more than one percentage point to growth in 25 metropolitan areas, most notably in San Jose-Sunnyvale-Santa Clara, CA (2.75 percentage points), the second fastest growing metropolitan area in the nation (8.9 percent).
- The wholesale and retail trade industry group contributed 0.40 percentage point to U.S. metropolitan area real GDP growth in 2015. This industry contributed to growth in 335 metropolitan areas and was the leading contributor to growth in 67 metropolitan areas. This industry contributed more than one percentage point to growth in 20 metropolitan areas, most notably in Hickory-Lenoir-Morganton, NC (1.44 percentage points).
- The finance, insurance, real estate, rental, and leasing industry group contributed 0.39 percentage point to U.S. metropolitan area real GDP growth in 2015. This industry contributed to growth in 246 metropolitan areas and was the leading contributor to growth in 86 metropolitan areas. This industry contributed more than one percentage point to growth in 48 metropolitan areas. This industry also had strong contributions to growth in three metropolitan areas in Florida where total growth was greater than four percent: Sebastian-Vero Beach, FL (3.22 percentage points); Naples-Immokalee-Marco Island, FL (2.91 percentage points); and Punta Gorda, FL (2.39 percentage points).
- Although natural resources and mining and nondurable-goods manufacturing were not major contributors to growth for the nation, these industries contributed to strong growth in several of the fastest growing metropolitan areas. Natural resources and mining led to notable growth in total real GDP for Midland, TX (9.4 percent) and Visalia-Porterville, CA (7.6 percent), the fastest and fourth fastest growing metropolitan areas, respectively. Nondurable-goods manufacturing led to growth in Lake Charles, LA (8.3 percent)–the third fastest growing metropolitan area.
- Transportation and utilities subtracted 0.14 percentage point from U.S. metropolitan area real GDP growth in 2015. This industry subtracted from growth in 311 metropolitan areas. The largest subtractions occurred in Houma-Thibodeaux, LA (5.50 percentage points) and Homosassa Springs, FL (3.37 percentage points).
Large Metropolitan Area Highlights
- Of the large metropolitan areas, those with population greater than two million, San Antonio-New Braunfels, TX (5.9 percent) and Austin-Round Rock, TX (5.0 percent) were the fastest growing large metropolitan areas. San Antonio-New Braunfels, TX was led by a strong contribution from natural resources and mining (2.51 percentage points), while growth in Austin-Round Rock, TX was led by professional and business services (1.57 percentage points).
- The slowest growing large metropolitan areas were Washington-Arlington-Alexandria, DC-VA-MD-WV (1.3 percent) and Cleveland-Elyria, OH (1.1 percent). Growth in Washington-Arlington-Alexandria, DC-VA-MD-WV was restrained by a decline in finance, insurance, real estate, rental and leasing (–0.17 percentage points), while durable-goods manufacturing restrained growth in Cleveland-Elyria, OH (–0.32 percentage points).
More metropolitan area highlights can be found on the regional highlights pages that accompany this release.
GDP by Metropolitan Area Statistics
The statistics of GDP by metropolitan area for 2015 are based on source data that are subject to further revision and are limited to 22 NAICS-based sectors. Revised statistics for 2014 are released for 22 NAICS-based sectors and, for the first time, more-detailed 61 NAICS-based subsectors. Statistics for 2001–2013 are also revised. More information on these statistics and the sources of the revisions will appear in the October 2016 issue of the Survey of Current Business, BEA's monthly journal.
Next release – September 2017 for: Gross Domestic Product by Metropolitan Area, 2016
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Gross domestic product (GDP) by metropolitan area is the sub-state counterpart of the Nation's gross domestic product (GDP), the Bureau's featured and most comprehensive measure of U.S. economic activity. GDP by metropolitan area is derived as the sum of the GDP originating in all the industries in the metropolitan area.
Current-dollar statistics are valued in the prices of the period when the transactions occurred–that is, at "market value." Also referred to as "nominal GDP" or "current-price GDP."
Real values are inflation-adjusted statistics–that is, these exclude the effects of price changes.
Natural resources and mining. This industry is comprised of agriculture, forestry, fishing, and hunting and mining.
Quantities and prices. Quantities, or "real" measures, are expressed as index numbers with a specified reference year equal to 100 (currently 2009). Quantity indexes are calculated using a Fisher-chained weighted formula that incorporates weights from two adjacent periods (quarters for quarterly data and annuals for annual data). "Real" dollar series are calculated by multiplying the published quantity index by the current dollar value in the reference year (2009) and then dividing by 100. Percent changes calculated from chained-dollar levels and quantity indexes are conceptually the same; any differences are due to rounding.
Chained-dollar values are not additive because the relative weights for a given period differ from those of the reference year.
Chained-dollar values of GDP by metropolitan area are derived by applying national chain-type price indexes to the current dollar values of GDP by metropolitan area for the 61 detailed NAICS-based industries. The chain-type index formula that is used in the national accounts is then used to calculate the values of total real GDP by metropolitan area and real GDP by metropolitan area at more aggregated industry levels. Real GDP by metropolitan area may reflect a substantial volume of output that is sold to other areas and countries. To the extent that a metropolitan area's output is produced and sold in national markets at relatively uniform prices (or sold locally at national prices), real GDP by metropolitan area captures the differences across metropolitan areas that reflect the relative differences in the mix of goods and services that the areas produce. However, real GDP by metropolitan area does not capture geographic differences in the prices of goods and services that are produced and sold locally.
Relation of GDP by metropolitan area real growth rates to national GDP. The statistics of GDP by metropolitan area released today are consistent with statistics of GDP by state released June 14, 2016, which were based on the annual revision of the national income and product accounts (NIPAs) released on July 29, 2015, and BEA's national statistics of GDP by industry released on November 5, 2015. The growth rate of real GDP in the nation's metropolitan areas differs from the nation's real GDP growth rates released in July 2015. In part, the difference is caused by the inclusion of nonmetropolitan areas in the national statistics. In addition, growth rates differ because of differences in the timing of production cycles and availability of data in preparing national and regional statistics, which currently preclude BEA from incorporating the immediately preceding July annual revisions of the NIPAs into the advance statistics of GDP by metropolitan area.
Metropolitan (statistical) areas. The metropolitan (statistical) areas used by BEA for its entire series of GDP statistics are the county-based definitions developed by the Office of Management and Budget (OMB) for federal statistical purposes and last updated in July 2015. OMB's general concept of a metropolitan area is that of a geographic area consisting of a large population nucleus together with adjacent communities having a high degree of economic and social integration with the nucleus.
List of News Release Tables
Table 1. Current-Dollar Gross Domestic Product (GDP) by Metropolitan Area, 2010-2015
Table 2. Real Gross Domestic Product (GDP) by Metropolitan Area, 2010-2015
Table 3. Contributions to Percent Change in Real Gross Domestic Product (GDP) by Metropolitan Area, 2015