Wisconsin GDP up 2.5 percent in second quarter

Economic indicators

Last updated on July 2nd, 2019 at 09:07 am

Wisconsin’s real gross domestic product increased at a 2.5 percent annualized rate in the second quarter, an improvement from the 1 percent rate in the first quarter, according to data from the U.S. Department of Commerce.

Economic indicators

The state’s economy grew slower than the U.S. economy, which grew at a 2.8 percent rate during the second quarter.

The manufacturing sector contributed 0.44 percentage points to Wisconsin’s growth, the strongest of any sector in the state. The contribution was down, however, from the first quarter when manufacturing added almost 2.1 percentage points. Within manufacturing, nondurable goods contributed 0.32 points, down from 0.73 last quarter. The durable goods sector saw an even sharper drop from 1.35 points to 0.13.

The agriculture, forestry, fishing and hunting sector was just behind manufacturing, adding 0.43 percentage points to growth. The sector’s contribution was up from just 0.04 in the first quarter.

Health care and social assistance saw an even strong positive trend, going from being a 0.12 point drag on growth in the first quarter to providing a 0.35 point boost during the second quarter.

Other sectors contributing at least 0.2 points to growth included both retail and wholesale trade, real estate, information, professional, scientific and technical services and administrative and waste management.

Finance and insurance was the biggest drag on the state’s economy, providing a 0.69 percentage point headwind. Construction was a 0.13 point drag while government and educational services were 0.06 and 0.04 point headwinds.

Wisconsin’s GDP growth ranked 27th in the country during the quarter. North Dakota had the strongest growth at 8.3 percent after ranking 47th in the first quarter. Iowa was last as its GDP declined by 0.7 percent.

Within the Midwest, Wisconsin’s GDP growth was fourth behind North Dakota, Michigan and Missouri. Illinois was just behind with a 2.2 percent growth rate and Ohio was sixth at 2 percent.

Wisconsin has averaged a growth rate of almost 1.4 percent and a mid-20s GDP growth ranking nationally since the start of 2016. Michigan leads the Midwest over the same period, averaging 2.8 percent growth, followed by Indiana at 2.35 percent, Minnesota at 2.2, and Ohio at 1.57. Wisconsin is fifth, followed by Illinois, Missouri, Nebraska, Iowa, Kansas and then North and South Dakota.

Read more economic data report at the BizTracker page.

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Arthur covers banking and finance and the economy at BizTimes while also leading special projects as an associate editor. He also spent five years covering manufacturing at BizTimes. He previously was managing editor at The Waukesha Freeman. He is a graduate of Carroll University and did graduate coursework at Marquette. A native of southeastern Wisconsin, he is also a nationally certified gymnastics judge and enjoys golf on the weekends.

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