Texas Led GDP Growth in the Third Quarter of 2019


Real gross domestic product (GDP) increased in 49 states and the District of Columbia, in the third quarter 2019 compared to the previous quarter. Delaware recorded no change during this time. The U.S. Bureau of Economic Analysis reported the real GDP growth rates, measured on a seasonally adjusted annual rate basis, ranged from 4.0% in Texas to 0.4% in Hawaii.

Nationwide, real GDP growth increased to 2.1% in the third quarter of 2019, from 2.0% in the previous quarter. Nondurable goods manufacturing; retail trade; and professional, scientific, and technical services were the leading contributors to the real GDP growth in the third quarter.

Regionally, Southwest recorded the highest growth rates for the third quarter of 2019 at 3.5% a slower growth rate compared to the previous quarter rate of 4.3%. Mideastern states reported the lowest growth during this time at 1.2%, down from 1.5% in the second quarter. Year-over-year ending in the third quarter of 2019, Southwest again recorded the highest growth in real GDP at 4.0% while the Great Lakes recorded the lowest gains at 1.0%.

According to the industry statistics, 17 of 22 industry groups contributed to the overall 2.1% increase in real GDP in the third quarter. Real value added (a measure of an industry’s contribution to GDP) for the nondurable goods manufacturing industry group increased 10.1%, after decreasing 0.3% in the previous quarter.  Retail trade industry group’s real value added increased 8.2% in the third quarter, after increasing 0.2% in the second quarter. In the Professional, scientific, and technical services industry group, real value added increased 5.6% in the third quarter, after increasing 7.4% in the previous quarter.

Texas recorded the highest real GDP growth rate of 4.0% for the third quarter of 2019. The largest contributions came from nondurable goods manufacturing industry group. Utilities and Finance and insurance industry groups were the drags to the state economy. Professional, scientific, and technical services and Information industry groups were the leading contributor to growth in Utah (3.2%), the second fastest growing state. Information, Retail trade, and Professional, scientific, and technical services industry groups were the largest contributors to real GDP growth in Washington (3.1%), the third fastest growing state.

Tags: , , ,

Leave a Reply

Your email address will not be published. Required fields are marked *