Connecticut’s economy expanded at a 3% annual rate in the second quarter of 2026, outpacing national growth and leading New England, according to federal data released Wednesday.
The state’s inflation-adjusted gross domestic product grew faster than the nation’s 2.2% rate during the April-June period, the U.S. Bureau of Economic Analysis reported. Connecticut tied Florida for the seventh-fastest growth among states.
The expansion marked an acceleration from Connecticut’s revised 1.8% annual growth rate in the first quarter.
GDP measures the value of goods and services produced within an economy. The quarterly growth figures are adjusted for inflation and expressed as annual rates.
Manufacturing was the largest contributor to Connecticut’s GDP growth, adding 1.1 percentage points to the state’s overall growth rate, led by durable goods production. Finance and insurance added 0.83 percentage points, followed by information at 0.52 and real estate and rental and leasing at 0.51.
Declines in government output, retail trade, and transportation and warehousing partially offset those gains.
“Businesses continue to invest, hire and expand despite rising costs, labor force challenges and ongoing economic uncertainty,” said Chris DiPentima, president and CEO of the Connecticut Business & Industry Association.
DiPentima highlighted manufacturing as a key driver of Connecticut’s growth.
“Manufacturing continues to be one of Connecticut’s greatest economic strengths, with companies finding ways to innovate, increase productivity, and grow to meet demand even with ongoing workforce challenges,” he said.
Within New England, Massachusetts and Vermont each posted 2.7% GDP growth, followed by New Hampshire at 2%, Maine at 1.4% and Rhode Island at 0.9%.
Nationally, economic output increased in 44 states and the District of Columbia in the second quarter. New York led with 4% growth, while West Virginia recorded the steepest decline, at 2.3%.
Connecticut also outpaced the nation in personal income growth. The state’s personal income increased at a 5.3% annual rate in the second quarter, compared with 4.7% nationally.
