Real GDP in Connecticut in the third quarter of 2022 was 2.5% higher than the same period last year, according to data from the U.S. Bureau of Economic Analysis.
That growth is slower than the national rate of 3.2%, but on par with New York, and ahead of Rhode Island, Vermont and New Hampshire.
The increase follows a steep decline during the second quarter, during which time the state’s real GDP fell 4.7% – the second largest drop in the country. However, the Nutmeg State saw 5.5% growth in the first three months of the year.
Real GDP increased in 47 states in the third quarter, and ranged from 8.7% positive in Alaska to a drop of 0.7% in Mississippi, according to the BEA.
Also in the third quarter, personal income increased nationally at an annual rate of 5.3%, with the percentage change ranging from 14.2% in Colorado to 1.4% in Kentucky.
Connecticut’s personal income grew 4.9% in the third quarter – 25th best in the nation – according to the BEA.
The New England regional economy grew 2.7% in the third quarter, according to the BEA. Massachusetts saw an increase of 3.2%, Maine 2.8%, Rhode Island 1.8%, Vermont 1.3% and New Hampshire 1.8%.
Nationally, the leading contributors to the increase in real GDP were the information services; professional, scientific, and technical services; and mining industries.
The construction sector, which shrank 0.59% in the third quarter, tempered real GDP increases across the country and drove decreases in Mississippi and Indiana, according to the BEA.
Chris DiPentima, president and CEO of the Connecticut Business and Industry Association, said in a statement that he was encouraged by the report, but the labor shortage “continues to dampen economic growth, with businesses unable to fully meet demand.”
The CBIA cited data that shows Connecticut’s labor force declined by 52,100 people since February 2020, which represents 35% of the New England region’s losses.
“Until we address the factors driving the labor shortage, Connecticut’s economic growth will remain middle-of-the-road,” DiPentima said.
