Real gross domestic product (GDP) increased in 48 states in the second quarter of 2025 compared to the first quarter, according to the U.S. Bureau of Economic Analysis (BEA). Mississippi and Arkansas reported declines, while the District of Columbia reported no change during this time. Growth was geographically broad but varied considerably in magnitude, ranging from a 7.3 percent increase in North Dakota to a 1.1 percent decline in Arkansas.   Nationwide, growth in real GDP (measured on a seasonally adjusted annual rate basis) increased 3.8 percent in the second quarter of 2025. The leading contributors to the increase in real GDP across the country were finance and insurance; information; and nondurable-goods manufacturing.      Regionally, real GDP increased in all eight regions between the first and the second quarter of 2025. The percent change in real GDP ranged from a 2.9 percent increase in the Southeast region to a 6.0 percent increase in the Southwest region.           The strong performance in North Dakota, Texas, Kansas, New Mexico, and Wyoming reflected outsized contributions from mining, quarrying, and oil and gas extraction, underscoring the continued importance of the energy sector in driving state-level outcomes. At the same time, finance and insurance, information, and nondurable-goods manufacturing provided steady growth contributions across most regions, supporting broad-based gains. While the majority of states experienced moderate to strong expansion, a small number of states in the South and Midwest posted flat or declining GDP, highlighting ongoing sectoral challenges such as weaker agricultural output, subdued consumer spending, or slower goods production. At the industry level, finance and insurance, information services, and nondurable-goods manufacturing were the most consistent contributors to state-level GDP growth nationwide, while mining and energy extraction provided a particularly strong lift in western and energy-rich states. However, several sectors weighed on growth in specific regions. Agriculture, forestry, fishing, and hunting contracted in parts of the Midwest and Plains, offsetting gains elsewhere and contributing to weaker results in states with heavy reliance on farm output. In addition, durable-goods manufacturing was a mixed performer, with softness in transportation equipment and machinery limiting growth in certain industrial states. The divergence in growth rates illustrates the uneven distribution of economic momentum across the country, shaped largely by differences in industrial composition. Energy-producing states continued to benefit from elevated demand and investment in extraction industries, while states with less exposure to these sectors showed more modest gains. Overall, the data point to an economy that remains resilient at the national level but with significant regional disparities, emphasizing the influence of industry-specific factors on state growth trajectories. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.

Real gross domestic product (GDP) increased in ten states in the first quarter of 2025 compared to the last quarter of 2024, according to the U.S. Bureau of Economic Analysis (BEA). Thirty-nine states reported real GDP declines, while the District of Columbia and Delaware reported no change during this time. The percent change in real GDP ranged from a 1.7 percent increase at an annual rate in South Carolina to a 6.1 percent decline in Iowa and Nebraska. Nationwide, growth in real GDP (measured on a seasonally adjusted annual rate basis) declined 0.5 percent in the first quarter of 2025. This is the first decline in quarterly real GDP levels in three years. The leading contributors to the decrease in real GDP across the country were finance and insurance; agriculture, forestry, fishing and hunting; and wholesale trade. Regionally, real GDP growth declined in seven out of the eight regions between the last quarter of 2024 and the first quarter of 2025. The Southeast region was the only territory to post a meager 0.3 percent increase. The percent change in real GDP declines ranged from a 0.3 percent decline in the Southwest and Far West regions, to a 3.3 percent decline in the Plains region. At the state level, South Carolina posted the highest GDP growth rate (1.7 percent), followed by Florida (1.4 percent) and Alabama (1.0 percent). The percent increase in real GDP ranged from a 1.7 percent increase in South Carolina to a 0.1 percent increase in Georgia. On the other hand, 39 states reported real GDP declines ranging from a 0.1 percent decline in New Hampshire, Ohio, and Texas, to a 6.1 percent decline in Iowa and Nebraska for the first quarter of 2025. Looking at industry contributions to GDP across states, the “real estate and rental and leasing industry” was the leading contributor to growth in all 50 states and the District of Columbia. In contrast, the agriculture, forestry, fishing, and hunting industry led a decrease in 39 states, and was the leading contributor to economic contraction in 11 states. Discover more from Eye On Housing Subscribe to get the latest posts sent to your email.