Connecticut’s economy contracted during the first quarter of 2025, mirroring the performance of the U.S., according to new data from the federal Bureau of Economic Analysis.
Connecticut’s economy decreased at a 0.9% annualized pace in the first quarter, compared to a 0.5% decrease nationally, BEA data shows. Connecticut’s economy grew by 1.8% in the fourth quarter of last year, and 2.6% for all of 2024.
GDP is the market value of goods and services produced by the labor and property located in a state, and is considered the most comprehensive measure of economic activity.
Real GDP decreased in 39 states in the first quarter of 2025, with the percent change ranging from 1.7% at an annual rate in South Carolina to -6.1% in Iowa and Nebraska, BEA data shows.
Connecticut’s 0.9% decline was ranked 27th among U.S. states.
A major contributing factor to the U.S.’ negative first quarter growth was a significant increase in imports as companies tried to get ahead of President Trump’s tariff policies.
Imports are subtracted in the GDP calculation.
During the first quarter, every New England state’s economy shrank, led by Maine, which contracted by 1.2%.
The construction sector had the sharpest first-quarter decline in Connecticut, shrinking by 0.28%, followed by education services (-0.27%) and retail trade (-0.25%), BEA data shows.
The information sector showed the strongest growth, increasing 0.64%.
Meanwhile, Connecticut’s personal income increased 5.8% in the first quarter to $352.9 billion, which ranked 43rd in the nation, according to the data. New England averaged 5.6% growth in personal income, BEA data shows.
Nationally, personal income increased by 6.7% during the first quarter.
