State GDP Growth Q2 2026: New York Leads
The U.S. Economy grew at a 2.2% annualized rate in Q2 2026, with 44 states and Washington, D.C., expanding. New York led with 4% growth driven by finance, while West Virginia and Wyoming contracted due to mining declines.
The U.S. Economy expanded at a 2.2% annualized rate in the second quarter of 2026. All eight regions of the country saw growth, led by the Mideast and trailed by the Rocky Mountain region.
On September 30, 2026, the Bureau of Economic Analysis released its quarterly state-level data. Real GDP increased in 44 states and the District of Columbia. The gains highlight a stark regional divergence in economic performance as the national expansion continues.
State-level leaders and laggards
New York posted the strongest state GDP growth at 4.0% in the second quarter. Finance and insurance were the leading contributors to its increase. At the other end of the spectrum, six states recorded economic contractions.
West Virginia had the steepest contraction at -2.3%. Wyoming saw a decline of -1.6%. Alaska, North Dakota, Kansas, and Nebraska also recorded declines in real GDP. Mining was the leading contributor to the decreases in West Virginia and Wyoming.
The range of state performance was wide.
| State | Q2 2026 GDP Growth |
|---|---|
| New York | 4.0% |
| West Virginia | -2.3% |
| Wyoming | -1.6% |
Sectoral drivers of growth and decline
Nationally, several sectors provided the largest boosts to growth. Real estate and rental and leasing, information, durable goods manufacturing, and finance and insurance were the leading contributors. These gains were partially offset by decreases in transportation and warehousing, retail trade, and nondurable goods manufacturing.
The finance and insurance sector was not only key nationally but also propelled growth in specific states. It was the leading contributor in Delaware, which tied with South Carolina for the second-fastest growth rate at 3.5% each.
Connecticut’s standout performance
Connecticut's economy grew 3% in the second quarter of 2026, ranking as the seventh-fastest in the nation and the fastest in New England. More than one-third of that growth came from manufacturing. The state's finance and insurance sector itself expanded by 4.9% during the quarter.
Regional GDP gains in the quarter ranged from a 1.5% increase in the Rocky Mountain region to a 2.9% increase in the Mideast region. The data are subject to future revision, with an annual update scheduled for the following March. Historical vintages are available via the ALFRED database.
