Gross Domestic Product by State: First Quarter 2016
Construction Led Growth Across States in the First Quarter
Real gross domestic product (GDP) increased in 37 states and the District of Columbia in the first quarter of 2016, according to statistics on the geographic breakout of GDP released today by the Bureau of Economic Analysis. Real GDP by state growth, at an annual rate, ranged from 3.9 percent in Arkansas to -11.4 percent in North Dakota. Construction; health care and social assistance; and retail trade were the leading contributors to U.S. economic growth in the first quarter.
- Construction grew 9.0 percent in the first quarter of 2016—the eighth consecutive quarter of growth for this industry. This industry contributed to growth in 47 states and the District of Columbia and 1.1 percentage points to the 1.7 percent growth in real GDP in Hawaii.
- Health care and social assistance grew 3.8 percent in the first quarter. This industry contributed to growth in every state and the District of Columbia.
- Retail trade grew 4.8 percent in the first quarter. This industry contributed to growth in 47 states and the District of Columbia and 0.59 percentage point to the 3.9 percent growth in Washington.
- Although agriculture, forestry, fishing, and hunting was not a significant contributor to real GDP growth for the nation, it had an important impact on economic growth in several states. This industry contributed 2.21 percentage points to the 3.9 percent growth in Arkansas—the fastest growing state in the first quarter. By contrast, this industry subtracted more than 3.4 percentage points from real GDP growth in Iowa, North Dakota, and South Dakota, which declined 2.6 percent, 11.4 percent, and 2.8 percent, respectively.
- Mining declined 11.1 percent for the nation in the first quarter. This industry subtracted 1.82 percentage points from real GDP growth in Wyoming, which declined 4.9 percent, and more than 2.0 percentage points from Alaska, North Dakota, and West Virginia, which declined 1.0 percent, 11.4 percent, and 2.5 percent, respectively.
- Transportation and warehousing declined 8.8 percent for the nation in the first quarter. This industry subtracted from real GDP growth in all states and the District of Columbia. This industry subtracted 1.06 percentage points from real GDP growth in Wyoming and 1.63 percentage points in North Dakota.
Upcoming Revision of the Gross Domestic Product by State Accounts. Revised statistics of gross domestic product by state, covering the first quarter of 2013 through the first quarter of 2016, will be released along with the second quarter of 2016 on December 7. These revisions will be consistent with the results of the annual revision of the national income and product accounts, which will be released on July 29, and the annual revision of the industry economic accounts, which will be released on November 3.
Next release — December 7, 2016 at 8:30 A.M. EST for: Gross Domestic Product by State: Second Quarter 2016 and Revised Gross Domestic Product by State
- Stay informed about BEA developments by reading the BEA blog, signing up for BEA’s email subscription service, or following BEA on Twitter @BEA_News.
- Historical time series for these estimates can be accessed in BEA’s Interactive Data Application.
- Access BEA data by registering for BEA’s Data Application Programming Interface (API).
- For more on BEA’s statistics, see our monthly online journal, the Survey of Current Business.
- BEA's news release schedule.
Gross domestic product (GDP) by state is the market value of goods and services produced by the labor and property located in a state. GDP by state is the state counterpart of the Nation's GDP, the Bureau's featured and most comprehensive measure of U.S. economic activity.
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.
Seasonal adjustment and annual rates. Quarterly values are expressed at seasonally-adjusted annual rates (SAAR). For details, see the FAQ “Why does BEA publish estimates at annual rates?”
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 state are derived by applying national chain-type price indexes to the current dollar values of GDP by state for the 21 NAICS-based industry sectors. The chain-type index formula that is used in the national accounts is then used to calculate the values of total real GDP by state and real GDP by state at more aggregated industry levels. Real GDP by state may reflect a substantial volume of output that is sold to other states and countries. To the extent that a state's output is produced and sold in national markets at relatively uniform prices (or sold locally at national prices), real GDP by state captures the differences across states that reflect the relative differences in the mix of goods and services that the states produce. However, real GDP by state does not capture geographic differences in the prices of goods and services that are produced and sold locally.
Relation of Gross Domestic Product (GDP) by State for the U.S. to GDP in the National Accounts. An industry's GDP by state, or its value added, in practice, is calculated as the sum of incomes earned by labor and capital and the costs incurred in the production of goods and services. That is, it includes the wages and salaries that workers earn, the income earned by individual or joint entrepreneurs as well as by corporations, and business taxes such as sales, property, and Federal excise taxes—that count as a business expense.
GDP is calculated as the sum of what consumers, businesses, and government spend on final goods and services, plus investment and net foreign trade. In theory, incomes earned should equal what is spent, but due to different data sources, the measurement of income earned, usually referred to as gross domestic income (GDI), does not always equal the measurement of what is spent (GDP). The difference is referred to as the "statistical discrepancy."
GDP by state for the U.S. differs from the GDP in the national income and product accounts (NIPAs) and thus from the Industry Economic Accounts' GDP by industry, because GDP by state for the U.S. excludes federal military and civilian activity located overseas, which cannot be attributed to a particular state.
List of News Release Tables
Table 1. Percent Change in Real Gross Domestic Product (GDP) by State, 2015:I-2016:I
Table 2. Contributions to Percent Change in Real Gross Domestic Product (GDP) by State, 2015:IV-2016:I
Table 3. Current-Dollar Gross Domestic Product (GDP) by State, 2015:I-2016:I