Broad Growth Across States in 2014
Advance 2014 and Revised 1997—2013 Statistics of GDP by State
Real gross domestic product (GDP) increased in 48 states and the District of Columbia in 2014, according to new statistics released today by the Bureau of Economic Analysis (BEA). Professional, scientific, and technical services; nondurable goods manufacturing; and real estate and rental and leasing were the leading contributors to real U.S. economic growth. U.S. real GDP grew 2.2 percent in 2014 after increasing 1.9 percent in 2013.
Real GDP increased in all eight BEA regions in 2014. Contributions from mining in Oklahoma and Texas led growth in the Southwest region (4.3 percent)—the fastest growing BEA region.
Professional, scientific, and technical services was the largest contributor to U.S. real GDP by state growth in 2014. This industry grew 4.2 percent in 2014 compared with 0.7 percent in 2013 and contributed 0.29 percentage point to U.S. real GDP growth. It was the leading contributor to growth in the New England and Far West regions and contributed to growth in 46 states and the District of Columbia. It was a large contributor to growth in three states—California, Massachusetts, and Utah.
Nondurable goods manufacturing grew 4.2 percent in 2014 compared with 1.1 percent in 2013 and contributed 0.23 percentage point to U.S. real GDP growth. In 2014, this industry was the largest contributor to growth in the Great Lakes region and contributed to growth in 41 states. It made a substantial contribution to growth in Louisiana and Montana.
Real estate and rental and leasing grew 1.5 percent in 2014 down slightly from 1.6 percent in 2013 and contributed 0.20 percentage point to U.S. real GDP growth. In 2014, this industry was the largest contributor to growth in the Southeast region and contributed to growth in 32 states and the District of Columbia.
Although mining was not a significant contributor to real GDP growth for the U.S. economy, it did play a key role in several states. This industry was a large contributor in the five fastest growing states—North Dakota, Texas, Wyoming, West Virginia, and Colorado. By contrast, mining continued to decline in Alaska due to lower output on the state's North Slope.
Agriculture, forestry, fishing, and hunting declined in six of eight BEA regions in 2014. The industry declined in all seven states in the Plains region and subtracted significantly from growth in four states—South Dakota, Iowa, Nebraska, and North Dakota.
Per capita real GDP by state in 2014. Per capita real GDP ranged from a high of $66,160 in Alaska to a low of $31,551 in Mississippi. Per capita real GDP for the U.S. was $49,469.
Beginning in September 2015, BEA will release for the first time quarterly GDP by state on a regular basis. The next release of annual GDP by state statistics will be included with the quarterly GDP by state statistics released in the summer of 2016.
Annual Revision of Gross Domestic Product by State. The statistics released today reflect the results of the annual revision of gross domestic product (GDP) by state. This year's annual revision includes revised statistics beginning with 1997, though most notable revisions are generally limited to the period beginning with 2011. The revision incorporates the following revised or newly available source data:
— Results from the 2014 annual revision of the national income and product accounts.
— Results from the 2014 annual revision of the industry economic accounts.
— Results from the 2014 annual revision of the state personal income accounts.
— Incorporation of newly available and revised source data (e.g., Census Bureau's Economic Census of Manufacturing for 2012, Census Bureau's Annual Survey of Manufactures for 2013).
Additional information on this revision will be available in an article in the July 2015 issue of the Survey of Current Business.
Source Data for Advance Statistics of GDP by State for 2014
The advance statistics of GDP by state for 2014 are based on source data that are incomplete or subject to further revision by the source agency. Revised annual statistics, based on more complete data, will be included with the release of quarterly GDP by state in the summer of 2016.
More information on the methodology used to produce the advance 2014 statistics, on the revised statistics of GDP by state for 1997—2013, and on revisions to the statistics of GDP by state will appear in an article in the July 2015 issue of the Survey of Current Business.
Definitions. GDP by state is the state counterpart of the Nation's gross domestic product (GDP), the Bureau's featured and most comprehensive measure of U.S. economic activity. GDP by state is derived as the sum of the GDP originating in all the industries in a state.
The statistics of real GDP by state are prepared in chained (2009) dollars. Real GDP by state is an inflation–adjusted measure of each state's gross product that is based on national prices for the goods and services produced within that state. The statistics of real GDP by state and of quantity indexes with a reference year of 2009 were derived by applying national chain–type price indexes to the current–dollar values of GDP by state for the 64 detailed NAICS–based industries for 1997 forward.
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 of 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 GDP by state to U.S. Gross Domestic Product (GDP). 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, income earned, usually referred to as gross domestic income (GDI), does not always equal what is spent (GDP). The difference is referred to as the "statistical discrepancy."
Starting with the 2004 comprehensive revision, BEA's annual industry accounts and its accounts of GDP by state allocate the statistical discrepancy across all private–sector industries. Therefore, the statistics of GDP by state are now conceptually more similar to the GDP statistics in the national accounts than they had been in the past.
U.S. real GDP by state for the advance year, 2014, may differ from the Annual Industry Accounts' GDP by industry and, hence NIPA (National Income and Product Account) GDP, because of different sources and vintages of data used to estimate GDP by state and NIPA GDP. For the revised years of 1997–2013, U.S. GDP by state is nearly identical to GDP by industry except for small differences resulting from GDP by state' exclusion of overseas Federal military and civilian activity (because it cannot be attributed to a particular state). The statistics of GDP by industry are identical to those from the 2014 annual revision of the NIPAs, released in July 2014. However, because of revisions since July 2014, GDP in the NIPAs may differ from U.S. GDP by state.