These US states saw major economic contraction in just 4 months. Here's why
Most of the states with shrinking economies are along a north-south belt stretching from Wisconsin to Mississippi.
Economic output shrank in six US states in the second quarter of 2023, with the biggest contraction coming in the state with the smallest economy — Vermont — according to data published Tuesday by the Bureau of Economic Analysis.
Most of the states with shrinking economies are along a north-south belt stretching from Wisconsin to Mississippi. Meanwhile Texas, which has the second-biggest state economy behind California, posted a second straight quarter of growth at a pace close to 5%.
By industry, real gross domestic product rose in 14 out of the 23 groups measured by the BEA. Sectors such as professional services increased in every state, while retail trade contracted in every state, and accommodation and food services shrank everywhere except for Arkansas.
Economic output in finance and insurance contracted in 38 states, with New York and Connecticut among five states where the industry’s output shrank by at least one quarter of a percentage point.
Release of the second-quarter figures was delayed due to an overhaul of past data. The third-quarter numbers for state-level GDP are due to be published on Dec. 22.
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