Gross Domestic Product by State: Fourth Quarter and Annual 2016
Finance and Insurance Led Growth Across States in the Fourth Quarter
Real gross domestic product (GDP) increased in every state and the District of Columbia in the fourth quarter of 2016, according to statistics on the geographic breakout of GDP released today by the U.S. Bureau of Economic Analysis. Real GDP by state growth ranged from 3.4 percent in Texas to 0.1 percent in Kansas and Mississippi (table 1 and chart 1). Finance and insurance; retail trade; and professional, scientific, and technical services were the leading contributors to U.S. economic growth in the fourth quarter.
- Finance and insurance grew 6.3 percent in the fourth quarter of 2016. This industry contributed to growth in 49 states and the District of Columbia (table 2). The largest contributions to growth occurred in Delaware and South Dakota; these states grew 1.6 percent and 1.1 percent, respectively.
- Retail trade grew 5.7 percent. This industry contributed to growth in every state. The largest contributions to growth occurred in Washington and Texas; these states grew 3.1 percent and 3.4 percent, respectively.
- Professional, scientific, and technical services grew 3.6 percent. This industry contributed to growth in 47 states and the District of Columbia. The largest contributions to growth occurred in the District of Columbia and Utah. The District of Columbia grew 2.7 percent while Utah grew 3.2 percent.
Other fourth quarter highlights
- Mining grew 5.2 percent after six straight quarters of decline. It was the largest contributor to growth in West Virginia, North Dakota, and Oklahoma; these states grew 1.9 percent, 1.4 percent and 1.3 percent, respectively.
- The fastest growing states were Texas, Utah, and Washington which grew 3.4 percent, 3.2 percent, and 3.1 percent, respectively. The largest contributor to growth in Texas was real estate and rental and leasing while the largest contributors to growth in Utah and Washington were finance and insurance and information services, respectively.
- The slowest growing states were Mississippi, Kansas, and Wyoming which grew 0.1 percent, 0.1 percent, and 0.2 percent, respectively. Nondurable-goods manufacturing subtracted the most from growth in Mississippi and Kansas while agriculture, forestry, fishing, and hunting subtracted the most from growth in Wyoming.
Annual GDP by State in 2016
Real GDP growth slowed to 1.5 percent in 2016 after increasing 2.6 percent in 2015. Real GDP grew in 43 states and the District of Columbia. Real GDP by state growth ranged from 3.7 percent in Washington to -6.5 percent in North Dakota (table 4 and chart 2). Information services; professional, scientific, and technical services; and health care and social assistance were the leading contributors to growth in 2016. In contrast, a decline in mining subtracted from growth nationally.
- Information services grew 6.4 percent in 2016. This industry contributed to growth in 46 states and the District of Columbia. The largest contributions to growth occurred in Washington and California; these states grew 3.7 percent and 2.9 percent, respectively.
- Professional, scientific, and technical services grew 3.3 percent. This industry contributed to growth in 44 states and the District of Columbia. The largest contributions to growth occurred in the District of Columbia and Minnesota. The District of Columbia grew 2.4 percent while Minnesota grew 1.3 percent.
- Health care and social assistance grew 3.0 percent. This industry contributed to growth in 48 states and the District of Columbia. The largest contributions to growth occurred in Arizona and Montana; these states grew 2.1 percent and 0.2 percent, respectively.
Other annual highlights
- The fastest growing states were Washington, Oregon, and Utah which grew 3.7 percent, 3.3 percent, and 3.0 percent, respectively. The largest contributor to growth in Washington and Utah was information services while the largest contributor to growth in Oregon was durable-goods manufacturing.
- The states with the largest declines were North Dakota, Alaska, and Wyoming which declined 6.5 percent, 5.0 percent, and 3.6 percent, respectively. Mining was the largest contributor to the decline in each of these states.
Updates to Gross Domestic Product by State
In addition to the statistics presented in this news release, BEA also revised quarterly GDP by state statistics for 2013:Q1 to 2016:Q3 and annual statistics for 2013–2015. Updates are made each year about this time to incorporate new and revised state source data.
An article in the June 2017 issue of the Survey of Current Business will provide additional information about the update to GDP by state.
Next release — July 26, 2017 at 8:30 A.M. EDT for: Gross Domestic Product by State: First Quarter 2017
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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.
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:Q1–2016:Q4
Table 2. Contributions to Percent Change in Real Gross Domestic Product (GDP) by State, 2016:Q3–2016:Q4
Table 3. Current-Dollar Gross Domestic Product (GDP) by State, 2015:Q1–2016:Q4
Table 4. Percent Change in Real Gross Domestic Product (GDP) by State, 2013–2016
Table 5. Contributions to Percent Change in Real Gross Domestic Product (GDP) by State, 2015–2016