Broad-Based Growth Across U.S. States in Third Quarter of 2025

Widespread Expansion in State Economies

Real gross domestic product rose in all 50 states and the District of Columbia during the third quarter of 2025. The national annual rate of increase stood at 4.4 percent, but state-level performance varied considerably. Kansas recorded the highest growth rate at 6.5 percent, while North Dakota experienced the smallest gain at 0.4 percent.

This universal expansion reflects resilience across diverse regional economies. Current-dollar GDP also increased everywhere, advancing at a national annual rate of 8.3 percent. The range extended from 10.5 percent in Kansas to 2.6 percent in North Dakota. These figures underscore the breadth of economic momentum even as inflation and other factors influenced nominal versus real measures.

Industry Drivers of Real GDP Growth

Real GDP advanced in 19 of the 23 industry groups tracked by the Bureau of Economic Analysis for quarterly state estimates. Nationally, the primary contributors were information services, finance and insurance, and professional, scientific, and technical services. These sectors propelled growth in nearly half of all states.

Durable-goods manufacturing provided additional support, expanding in every state and the District of Columbia. It served as the leading contributor in 13 states. Among these were Arkansas and Connecticut, which posted the third- and fourth-highest overall real GDP growth rates, respectively. The consistency of manufacturing gains highlights its role in bolstering state economies during this period.

Agriculture's Notable Influence in Top-Performing States

Agriculture, forestry, fishing, and hunting registered increases in 34 states. This sector proved especially significant in the two fastest-growing states. It was the leading contributor to real GDP expansion in both Kansas and South Dakota, which ranked first and second nationally in growth rates.

The performance of agriculture in these leading states illustrates how sector-specific strengths can amplify overall economic results. While services and manufacturing dominated in many areas, resource-based industries continued to shape outcomes in regions where they hold substantial weight. This pattern adds nuance to the narrative of broad-based growth.

Personal Income Advances and Component Contributions

Personal income increased in every state and the District of Columbia in the third quarter. The national annual rate of growth for current-dollar personal income was 3.3 percent. Kansas again led with a 6.3 percent rise, while Louisiana recorded the smallest increase at 0.1 percent.

All major components—earnings, transfer receipts, and property income—supported the national increase. Earnings grew 3.6 percent overall, ranging from 7.3 percent in both Iowa and South Dakota to 0.7 percent in Oklahoma. Earnings represented the largest contributor to personal income growth in 46 states and the District of Columbia, affirming the importance of labor market conditions.

Variations in Transfer Receipts and Property Income

Transfer receipts rose 5.1 percent nationally. Changes at the state level showed considerable dispersion, from an 11.8 percent increase in New York to a 6.8 percent decline in Louisiana. The overall rise stemmed from higher Medicaid payments and Medicare benefits, although Social Security payments worked in the opposite direction.

Property income advanced more modestly at 0.6 percent nationally. State outcomes ranged from a 1.3 percent gain in Wyoming to a 0.2 percent decrease in West Virginia. These differences reflect varying exposures to dividends, interest, and rent across regions. Together with earnings and transfers, they produced universal personal income growth despite uneven component performance.

Revisions, Per Capita Measures, and Future Reporting Changes

The Bureau simultaneously released revised quarterly personal income estimates for the first and second quarters of 2025. These updates incorporated more complete source data and aligned state figures with national estimates from the National Income and Product Accounts. New per capita personal income estimates for the third quarter were also provided, along with revisions for earlier quarters, using U.S. Census Bureau population data.

Looking ahead, the Bureau announced that beginning in April 2026 it will combine national and state economic releases. This approach will integrate GDP, industry detail, corporate profits, state GDP, and state personal income in a single publication. The change aims to offer a more comprehensive view of economic conditions at both national and subnational levels. Tables previously embedded in news releases have also shifted to an interactive data application to improve accessibility and reduce duplication.

Source

U.S. Bureau of Economic Analysis published this record on 2026-01-23. Pennington Financial accessed it on 2026-11-01.