Home > Gross Domestic Product by State, Second Quarter 2016
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Gross Domestic Product by State: Second Quarter 2016

Transportation and Warehousing Led Growth Across States in the Second Quarter

Real gross domestic product (GDP) increased in 41 states and the District of Columbia in the second 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 4.3 percent in Nebraska to –5.6 percent in North Dakota. Transportation and warehousing; health care and social assistance; and professional, scientific, and technical services were the leading contributors to U.S. economic growth in the second quarter.

Map of US
  • Transportation and warehousing grew 14.0 percent in the second quarter of 2016. This industry contributed to growth in 47 states and the District of Columbia and contributed 0.97 percentage point to the 2.3 percent growth in Nevada.
  • Health care and social assistance grew 4.7 percent in the second quarter. This industry contributed to growth in every state and the District of Columbia.
  • Professional, scientific, and technical services grew 3.7 percent in the second quarter—the ninth consecutive quarter of growth for this industry. This industry contributed to growth in 47 states and the District of Columbia.

Other highlights

  • 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 3.80 percentage points to the 4.3 percent growth in Nebraska—the fastest growing state in the second quarter. By contrast, this industry subtracted more than 2.0 percentage points from real GDP growth in North Dakota and South Dakota, which declined 5.6 percent, and 1.0 percent, respectively.
  • Mining declined 20.4 percent for the nation in the second quarter. This industry subtracted 5.13 percentage points from real GDP growth in Wyoming, which declined 5.3 percent, and more than 2.0 percentage points from Alaska, North Dakota, Oklahoma, and West Virginia, which declined 2.0 percent, 5.6 percent, 2.7 percent, and 0.8 percent, respectively.
  • Retail trade declined 2.8 percent for the nation in the second quarter. This industry subtracted from real GDP growth in all states, except New Hampshire and the District of Columbia.

Updates to GDP by State

BEA also released revised quarterly GDP by state statistics for 2005:Q1 to 2016:Q1 and revised annual GDP by state statistics for 1997 to 2015. Updates are made each year to incorporate the results of the annual update to the national income and product accounts (July 2016), the annual update to state personal income (September 2016), and the annual update to GDP by industry (November 2016).

This year's annual revision to state personal income introduced two major methodological improvements affecting nonfarm proprietors' income that impacted the GDP by state statistics. These methodological improvements—(1) improved geocoding and editing of source data from IRS Form 1065 (Partnership Returns) and Schedule C of Form 1040 (Sole Proprietor Returns), and (2) an improved method of allocating national control totals to stateswere discussed in the July 2016 and October 2016 issues of the Survey of Current Business.

An article in the January 2017 issue of the Survey of Current Business will provide additional information about the update to GDP by state.


Next release — February 2, 2017 at 8:30 A.M. EST for: Gross Domestic Product by State, Third Quarter 2016


Additional Information

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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.

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?"

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:Q2

Table 2. Contributions to Percent Change in Real Gross Domestic Product (GDP) by State, 2015:Q1-2016:Q2

Table 3. Current-Dollar Gross Domestic Product (GDP) by State, 2015:Q1-2016:Q2