Real gross domestic product (GDP) increased in every state and the District of Columbia in the third quarter of 2017, according to the U.S. Bureau of Economic Analysis. Thirty-one states and the District of Columbia recorded growth in the third quarter compared to the second quarter while 17 states reported a decline in this time period. Two states, Tennessee, and Utah remained flat. As a result, nationwide growth in real GDP, measured on a seasonally adjusted annual rate, reached 3.4% in the third quarter, accelerating from its 2.8% rate in the second quarter of 2017.
Across all the states and the District of Columbia, real GDP growth (SAAR) in the third quarter of 2017, ranged from 5.7% in Delaware to 0.5% in South Dakota.
The construction sector component of the GDP measures the amount of spending, and not just project counts, towards new construction. It includes both residential and non-residential construction in the private sector, as well as state and federal government spending. Nationwide, the construction sector spending levels declined by 1.2% from the second quarter of 2017 to the third quarter of 2017 (SAAR). Over the quarter, 20 states recorded an increase in the construction sector while 30 states and the District of Columbia recorded a decline.
It’s important to note that while the trends more generally in the same direction, there is a difference between the BEA’s construction measure and Census’ construction put-in-place estimate. NAHB’s understanding is that BEA’s measure underestimates the Census Bureau estimate because new construction by industries of their own facilities is included in that industry’s output, not in the construction industry output. In addition, maintenance and repair construction is not considered industry output in the put-in-place data but is included in GDP by Industry. In addition, the put-in-place data includes intermediate costs, such as the costs of materials and supplies, and the costs of engineering or architectural services.
The real estate and rental and leasing sector includes renting, leasing, or otherwise allowing the use of tangible or intangible assets (except copyrighted works), and providing related services. Nationwide, the real estate and rental and leasing sector increased by 0.4% from the second quarter of 2017 to the third quarter of 2017 (SAAR).
Twenty-seven states and the District of Columbia registered an increase in the real estate and rental and leasing sector while 21 states saw a decline in this sector between the second and the third quarter of 2017. Georgia and Kentucky recorded no change during this time period.