📊 Gross Domestic Product by State and Personal Income by State: Q2 2025 Summary
The Gross Domestic Product (GDP) by State and Personal Income by State report, released by the U.S. Bureau of Economic Analysis (BEA), provides a detailed look at how the U.S. economy performed across states in the second quarter of 2025. It also includes annual statistics on state personal consumption expenditures (PCE) for 2024. This report is crucial for understanding regional economic trends, disparities, and the underlying drivers of growth or contraction.
Overview of Key Findings
The report highlights broad-based economic growth across most states, with some regional disparities. It also details the sources of personal income growth and the industries driving state-level economic changes.
1. Real GDP Growth by State
- 🟢 Widespread Growth: Real GDP increased in 48 states during Q2 2025, with the national rate at 3.8% (annualized).
- 🏆 Top Performers: North Dakota led all states with a 7.3% increase, followed by strong gains in Texas, New Mexico, and Wyoming.
- 🔻 Declines: Arkansas saw a 1.1% decline, and the District of Columbia’s GDP was unchanged.
- 📈 Industry Drivers: Growth was led by finance and insurance, information, and nondurable-goods manufacturing. Mining, quarrying, and oil and gas extraction were especially important in energy-producing states, while agriculture was a key factor in several others.
2. Industry Contributions to GDP
- 💼 Finance and Insurance: Major contributor to national and state-level growth, especially in states with large financial sectors.
- 🖥️ Information Sector: Drove growth in tech-heavy states.
- 🏭 Manufacturing: Nondurable-goods manufacturing was a significant positive factor.
- ⛏️ Mining and Energy: Mining, quarrying, and oil and gas extraction boosted GDP in 45 states, leading growth in eight, including North Dakota and Texas.
- 🌾 Agriculture: Increased in 27 states, leading growth in six (notably Kansas), but was a drag in others, including Arkansas and Mississippi.
3. Personal Income by State
- 💵 Universal Increases: Personal income rose in all 50 states and D.C., with a national increase of 5.5% (annualized).
- 🚀 Highest Growth: Kansas saw the largest jump at 10.4%, while Arkansas had the smallest at 0.9%.
- 🏛️ D.C. Growth: Personal income in the District of Columbia rose by 4.9%.
- 🧾 Income Components:
- Earnings: Up 4.4% nationally, but declined in Arkansas and Mississippi.
- Transfer Receipts: Up 14.4% nationally, with the largest increases in Massachusetts (23.8%). This was partly due to retroactive Social Security payments under the Social Security Fairness Act of 2024.
- Property Income: Up 1.0% nationally, with modest gains across states.
4. Per Capita Personal Income
- 👥 Metropolitan vs. Nonmetropolitan: In 2023, per capita personal income rose 5.5% in metropolitan areas and 4.4% in nonmetropolitan areas, reflecting stronger growth in urban centers.
5. Data Updates and Methodology
- 🔄 Annual Revisions: The report incorporates updated and more detailed data, aligning with the latest National Income and Product Accounts and GDP by industry statistics.
- 🖱️ Modernized Access: Data tables are now available online for flexible, user-driven analysis, rather than being included in the release itself.
6. Uses and Implications
- 🏛️ Policy and Planning: Federal and state agencies use these statistics for forecasting, allocating funds, and planning public services.
- 🏢 Research and Analysis: Academics and businesses use the data to analyze regional economic conditions and trends.
💡 Summary
The Q2 2025 Gross Domestic Product by State and Personal Income by State report shows robust economic growth across most of the U.S., with a national real GDP increase of 3.8% and personal income up 5.5%. Growth was broad-based but varied by state, with energy, finance, and information sectors leading in many regions. Personal income gains were driven by higher earnings, increased transfer receipts (notably from Social Security changes), and property income. The report’s detailed breakdown helps policymakers, researchers, and analysts understand the economic landscape at the state level, supporting informed decisions and targeted policy responses.
References:
Gross Domestic Product by State and Personal Income by State, Bureau of Economic Analysis