Q3 Slowdown in Real GDP Growth Evident in Nearly Every State

Real GDP expanded in 37 States, but at a more moderate paceSummary 

  • Forty-nine states and the District of Columbia posted a more moderate rate of real GDP growth in Q3 compared to the previous quarter, as supply chain bottlenecks, intensifying inflation, labor shortages and a resurgence of the pandemic weighed on economic activity. Delaware was the only state to see real GDP accelerate in Q3.
  • State level GDP is the state counterpart of the nation’s GDP, which expanded at a 2.3% on a seasonally adjusted annualized rate (SAAR) during the third quarter.
  • On a quarterly SAAR basis, real GDP rose in 37 states during 2021Q3, while 13 states registered a decline.
  • Several states expanded at a rate faster than the national average, notably Hawaii (6.0%), Delaware (4.7%), Massachusetts (3.7%), New Jersey (3.7%) and Florida (3.7%).
  • States posting notable declines include North Dakota (-3.3%), New Hampshire (-3.3%), Louisiana (-2.7%), Wyoming (-1.5%) and Idaho (-1.0%).
  • Most major industry groups (13 out of 21) saw economic output rise during Q3.
  • Professional, scientific and technical services, a category that captures many tech and life sciences firms, boosted GDP in every state and was the leading contributor in 18 states.