Gross Domestic Product by State: First Quarter of 2017
Real Estate and Rental and Leasing Led Growth Across States in the First Quarter
Real gross domestic product (GDP) increased in 43 states and the District of Columbia in the first quarter of 2017, according to statistics on the geographic breakout of GDP released today by the U.S. Bureau of Economic Analysis. Real GDP by state growth in the first quarter ranged from 3.9 percent in Texas to -4.0 percent in Nebraska (table 1 and chart 1).
Real estate and rental and leasing; mining; and durable-goods manufacturing were the leading contributors to U.S. economic growth in the first quarter (table 2). Overall growth in real GDP slowed in the first quarter from the fourth quarter of 2016, with finance and insurance, retail trade, and agriculture, forestry, fishing, and hunting leading the deceleration in real GDP.
- Real estate and rental and leasing grew 2.7 percent nationally in the first quarter of 2017. This industry contributed to growth in 44 states. The largest contributions to growth occurred in Virginia and Maryland; these states grew 2.0 percent and 2.1 percent, respectively.
- Mining grew 21.6 percent nationally. This industry contributed to growth in 48 states. It was the leading contributor to growth in Texas, West Virginia, and New Mexico–the three fastest growing states–which grew 3.9 percent, 3.0 percent, and 2.8 percent, respectively.
- Durable-goods manufacturing grew 4.4 percent nationally. This industry contributed to growth in 47 states and the District of Columbia. The largest contributions to growth occurred in Michigan and Kentucky; these states grew 1.5 percent and 1.8 percent, respectively.
- Finance and insurance declined 2.1 percent nationally. This industry subtracted from growth in 45 states and the District of Columbia. The largest subtractions occurred in Delaware and Utah; these states grew 0.3 percent and 1.9 percent, respectively.
- Retail trade declined 3.6 percent nationally. This industry subtracted from growth in every state. The largest subtractions occurred in Oklahoma and West Virginia; these states grew 1.9 percent and 3.0 percent, respectively.
- Agriculture, forestry, fishing, and hunting declined 39.8 percent nationally. This industry subtracted from growth in 39 states. The largest subtractions occurred in South Dakota, Iowa, and Nebraska, the states with the largest declines in real GDP. Real GDP in these states declined 3.8 percent, 3.2 percent, and 4.0 percent, respectively.
Upcoming Update of the Gross Domestic Product by State Accounts
Updated statistics of gross domestic product (GDP) by state, covering the first quarter of 2014 through the first quarter of 2017, will be released along with quarterly GDP by state for the second quarter of 2017 on November 21. The update will be fully consistent with the annual update of the national income and product accounts, which will be released on July 28, and the annual update of the industry economic accounts, which will be released on November 2.
Next release — November 21, 2017 at 8:30 A.M. EST for: Gross Domestic Product by State: Second Quarter 2017, Update of the Gross Domestic Product by State Accounts
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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.
Contributions to growth are an industry's contribution to the state's overall percent change in real GDP. The contributions are additive and can be summed to the state's overall percent change.
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, 2016:Q1–2017:Q1
Table 2. Contributions to Percent Change in Real Gross Domestic Product (GDP) by State, 2016:Q4–2017:Q1
Table 3. Current-Dollar Gross Domestic Product (GDP) by State, 2016:Q1–2017:Q1