economy grew by 3.2% in the third quarter — after negative growth during the first half of 2022.But a number of states are seeing flat or negative economic growth as inflation, though moderating, and high interest rates impact consumer and business spending.Energy and mining helped propel growth in Alaska, Texas, Wyoming and other states with the highest GDP gains in the third quarter versus a year ago, according to the U.S. Bureau of Economic Analysis numbers released Dec. 23.Alaska (8.7%), Texas (8.5%), Oklahoma (5.5%), Wyoming (5.3%) and North Dakota (5.2%) posted the strongest economic growth numbers in the third quarter, according to BEA.The need for materials for electric batteries for cars and other products is helping propel mining growth in some states.But a number of states posted negative or flat economic gains during 3Q 2022 as higher interest rates impact business and consumer financing and as well as real estate and construction.Mississippi (-0.7%), Indiana (-0.5%) and South Dakota (0.5%) posted negative growth.Nineteen states and the District of Columbia saw third quarter GDP of less than 2% including Montana (1.5%), Wisconsin (0.6%), Ohio (1.2%), Michigan (1.7%), Iowa (0.3%), Maryland (1.8%) and Nebraska (1.2%), according to the U.S. economic agency.The U.S. economy (including consumers and small businesses) continue to navigate high (though slightly moderating) inflation and Federal Reserve Bank interest rate hike to curtail prices, wage growth and economic activity.In growth regions and more populous states, economic growth levels were mixed with some states outpacing the national GDP number and other states lagging that 3.2%, according to BEA.Oregon (4.1%), Washington (3.5%), California (3.8%), Florida (3.8%), Tennessee (3.9%) and Idaho (3.3%) outpaced the national average while New York (2.5%), Minnesota (2.2%) and Illinois (2.2%) saw slower gains.
This article was originally published by Montana Right Now.
