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Gross Domestic Product by State, 4th quarter 2017 and annual 2017 (preliminary)

Summary:
Texas Had the Fastest Growth in the Fourth Quarter Real gross domestic product (GDP) increased in 47 states and the District of Columbia in the fourth quarter of 2017, according to statistics on the geographic breakout of GDP released today by the U.S. Bureau of Economic Analysis. The percent change in real GDP in the fourth quarter ranged from 5.2 percent in Texas to -1.3 percent in North Dakota (table 1). Mining and construction were the leading contributors to the increase in real GDP in Texas, the fastest growing state (table 2). Agriculture, forestry, fishing, and hunting subtracted from growth in North Dakota and South Dakota–the only two states with decreases in fourth quarter real GDP.

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Texas Had the Fastest Growth in the Fourth Quarter

Real gross domestic product (GDP) increased in 47 states and the District of Columbia in the fourth quarter of 2017, according to statistics on the geographic breakout of GDP released today by the U.S. Bureau of Economic Analysis. The percent change in real GDP in the fourth quarter ranged from 5.2 percent in Texas to -1.3 percent in North Dakota (table 1).

Gross Domestic Product by State, 4th quarter 2017 and annual 2017 (preliminary)

Mining and construction were the leading contributors to the increase in real GDP in Texas, the fastest growing state (table 2). Agriculture, forestry, fishing, and hunting subtracted from growth in North Dakota and South Dakota–the only two states with decreases in fourth quarter real GDP.

Other highlights

  • Durable goods manufacturing increased 7.2 percent nationally and contributed to growth in every state and the District of Columbia. This industry was the leading contributor to the increases in real GDP in five of the ten fastest growing states.
  • Construction increased 8.4 percent nationally and contributed to growth in 49 states and the District of Columbia. In addition to Texas, this industry also made a notable contribution to the increase in real GDP in Florida.
  • Professional, scientific, and technical services increased 4.2 percent nationally and contributed to growth in every state and the District of Columbia.
  • Mining increased 10.0 percent nationally–the fifth consecutive quarter of growth. In addition to Texas, this industry made notable contributions to the increases in real GDP in Oklahoma and Alaska.
  • Agriculture, forestry, fishing, and hunting decreased 1.7 percent nationally–the fifth consecutive quarterly decline. This industry subtracted from growth in all the Plains states.

Annual GDP by state in 2017

Real GDP grew in 47 states and the District of Columbia in 2017. The percent change in real GDP ranged from 4.4 percent in Washington to -0.2 percent in Louisiana (table 4).

Gross Domestic Product by State, 4th quarter 2017 and annual 2017 (preliminary)

Retail trade and information services were the leading contributors to the increase in real GDP in Washington, the fastest growing state (table 5).

Real estate and rental and leasing; health care and social assistance; and durable goods manufacturing were the leading contributors to national economic growth in 2017. At the state level:

  • Real estate and rental and leasing was the leading contributor to increases in real GDP in Colorado and Nevada.
  • Health care and social assistance was the leading contributor to the increase in real GDP in Arizona.
  • Durable goods manufacturing was the leading contributor to growth in Utah and California.

Updates to Gross Domestic Product by State

Today, BEA also released revised quarterly estimates for 2014:Q1 to 2017:Q3, and annual statistics for 2014–2016. Updates are made each year about this time to incorporate new and revised state source data.

Next release — July 24, 2018 at 8:30 A.M. EDT for: Gross Domestic Product by State: First Quarter 2018


Additional Information

Resources

Definitions

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.

Statistical Conventions

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?"

Rankings. Rankings are based on unrounded statistics.

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:Q4

Table 2. Contributions to Percent Change in Real Gross Domestic Product (GDP) by State, 2017:Q3–2017:Q4

Table 3. Current-Dollar Gross Domestic Product (GDP) by State, 2016:Q1–2017:Q4

Table 4. Percent Change in Real Gross Domestic Product (GDP) by State, 2014–2017

Table 5. Contributions to Percent Change in Real Gross Domestic Product (GDP) by State, 2016–2017

Bureau of Economic Analysis
The BEA Advisory Committee advises the Director of BEA on matters related to the development and improvement of BEA’s national, regional, industry, and international economic accounts, especially in areas of new and rapidly growing economic activities arising from innovative and advancing technologies, and provides recommendations from the perspectives of the economics profession, business, and government.

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