Connecticut’s economy grew more slowly than the nation in the first quarter, as gains in the information sector and manufacturing were partly offset by weakness in retail, wholesale trade and finance.
The state’s real gross domestic product, which measures the value of goods and services produced in Connecticut, increased at a 1.8% annualized rate in the January-to-March period, according to data released Thursday by the U.S. Bureau of Economic Analysis. That trailed the 2.1% growth rate for the U.S. economy overall, but still ranked Connecticut 17th among the states in first-quarter GDP growth.
Both the U.S. and Connecticut economies accelerated in the first quarter from a 0.5% annualized growth rate in the final three months of 2025. Nationally, the BEA said first-quarter growth reflected increases in investment, exports, government spending and consumer spending.
In Connecticut, the information sector was the largest contributor to first-quarter GDP growth, adding 1.05 percentage points. Durable goods manufacturing contributed 0.97 percentage points, while professional, scientific and technical services added 0.46 percentage points.
Retail trade was the biggest drag on Connecticut’s economy in the first quarter, subtracting 0.52 percentage points from growth. Educational services reduced growth by 0.27 percentage points, followed by wholesale trade at 0.26 percentage points and finance and insurance at 0.25 percentage points.
Connecticut’s 1.8% growth rate topped several nearby states, including New York, Rhode Island, New Jersey and Vermont, while trailing Massachusetts and matching New Hampshire. Washington state posted the fastest first-quarter growth nationally at 4.5%, while South Dakota was the weakest at negative 1.6%.
Connecticut also trailed the nation on personal income growth. State personal income increased at a 2.2% annual rate in the first quarter, compared with a 3.4% gain nationally, according to the BEA. Connecticut ranked 43rd among the states in first-quarter personal income growth.
