Connecticut’s economy expanded by 2.7% in the third quarter of 2021, outpacing the national growth rate, as key sectors, specifically finance and insurance, posted higher than usual gains.
According to data released by the U.S. Bureau of Economic Analysis, Connecticut had the 15th-fastest growing economy in the nation between July and September, tied with Washington and Utah, which are usually well out of Connecticut’s league in most economic metrics.
Aside from the finance and insurance industries, manufacturing and professional and technical services also posted growth in the third quarter, making up for losses in wholesale and retail trade and construction.
Connecticut’s current-dollar gross domestic product now stands at $299.8 billion, second in New England to Massachusetts.
Nationally, Hawaii turned in the best performance of the third quarter, with growth of 6%, while South Dakota saw the most severe contraction of any U.S. state, with GDP decreasing by 3.3%.
Bureau analysts said finance, professional services and insurance contributed to GDP gains across the country, while sectors such as agriculture and forestry stumbled. The department also noted that a resurgence in COVID-19 could delay the reopening of businesses and services in certain parts of the country at a time when government assistance to households and families — a prominent feature of the country’s early pandemic response — is continuing to fall.
