Gross domestic product grew in every region of the United States in the second quarter of 2017, according to Bureau of Economic Analysis data.
The BEA introduced a new data set for GDP by state and region in 2014 and backdated it to Q1 2005. This week, the data was updated through Q2 2017. Even though we might consider this to be historically “old,” we think it’s worth reporting because it’s a foundation for where we are now. The data is published quarterly and is reported in chained 2009 dollars, seasonally adjusted. SMU analyzes the data and reports to subscribers quarterly by region. Should anyone wish to see data and graphs for an individual state, we will supply them on request. Table 1 shows the growth of regional GDP in chained 2009 dollars quarter on quarter. (These numbers are not annualized as is the case for published reports of the growth of national GDP.) In the second quarter, every region had positive growth.
The BEA produces a map of the United States showing quarter-over-quarter growth by state within each region. We have included here the map for Q2 2017, extracted from the BEA website, to enable readers to see how their individual states progressed between Q1 2017 and Q2 2017. Texas had the highest growth rate at 6.2 percent and Iowa the lowest at negative 0.7 percent.
Regions as defined by the BEA are as follows:
New England: Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, Vermont.
Mideast: Delaware, DC, Maryland, New Jersey, New York, Pennsylvania.
Great Lakes: Illinois, Indiana, Michigan, Ohio, Wisconsin.
Plains: Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota.
South East: Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee, Virginia, West Virginia.
South West: Arizona, New Mexico, Oklahoma, Texas
Rocky Mountain: Colorado, Idaho, Montana, Utah, Wyoming.
Far West: Alaska, California, Hawaii, Nevada, Oregon, Washington.
In the second quarter of 2017, the South West had the highest growth rate at 1.4 percent, followed by the Rocky Mountains at 0.9 percent.
Once a quarter, SMU publishes a report on regional job creation, which we hope, along with this analysis of regional GDP, will enable subscribers to compare their own corporate results with those of their region to establish whether their business is swimming up or down stream.
Figure 1 is intended to show readers an example of the graphs that we can produce on request for individual regions and states. In this case, we show the results for the Great Lakes region, which has an annual GDP of almost $2.3 trillion.
The U.S. values in this report are different and lower that the official report published in the National Income and Product Account (NIPA) reports, partly because the GDP-by-state numbers exclude federal military and civilian activity located overseas (because it cannot be attributed to a particular state). In addition, the official quarterly report of national GDP is annualized, which as we always report in our quarterly analysis increases the value by a factor of four.
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