Tags: State | Economies | Grow | US

US Data: State Economies Grew Considerably Slower in 2011

Tuesday, 05 Jun 2012 11:44 AM

Economies at the state level grew sharply slower in 2011 compared with 2010, mirroring more a less a national trend.

Real gross domestic product at the state level grew 1.5 percent in 2011, after expanding 3.1 percent in 2010, CNNMoney reports, citing U.S. Bureau of Economic Analysis data.

"Manufacturing and information services were the leading contributors to the growth," CNNMoney reports.

Editor's Note: How You Lost $85,000 During the Last Decade. See the Numbers.

"Dragging down the economies were utilities and real estate rental and leasing."

Forty-three states plus the District of Columbia reported expanding economies.

North Dakota grew the most, with its economy expanding 7.6 percent thanks to the state's bustling energy sector.

Wyoming fared the worst, with its economy contracting 1.2 percent in 2011 thanks to a weak mining sector.

Economies at the state level are behaving in a similar manner to the broader U.S. economy, whose growth is slowing as part of a synchronized cooling across the globe.

The U.S. economy grew 1.9 percent in the first quarter of 2012, down from an initial estimate of 2.2 percent.

Job growth continues to disappoint, especially in May, when the economy added a dismal 69,000 jobs, far below market hopes for 150,000 jobs.

As was the case over the last two years, 2012 began with optimism that has faded into increased anxiety and market volatility.

"We keep hoping that we're going to turn a corner and move into a stronger phase of recovery, and the door keeps getting slammed shut," says Julia Coronado, an economist at BNP Paribas in New York, according to the Associated Press.

Coronado expects the economy to grow 2.2 percent in 2012, down from a previous forecast of 2.4 percent, the AP adds.

Editor's Note: How You Lost $85,000 During the Last Decade. See the Numbers.

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