Gas prices across united state

NEW estimates of gross state product (GSP) for 2000 and revised estimates for 1998 and 1999 were released by the Bureau of Economic Analysis (BEA) on June 10, 2002. (1) GSP is the market value of the goods and services produced by the labor and property located in a State (see the box below). The new and revised GSP estimates are consistent with the estimates of gross domestic product (GDP) by industry for the Nation that were published in the November 2001 SURVEY OF CURRENT BUSINESS. (2) The GSP estimates presented here incorporate the results of the most recent annual revisions of State personal income and of the national income and product accounts. (3)

Real GSP for the Nation grew 4.5 percent in 2000, down slightly from 4.9 percent in 1999. Real GSP grew in all major industries except mining, and growth was particularly strong in finance, insurance, and real estate (mainly security and commodity brokers) and in "high-tech" manufacturing (including electronic and other electric equipment and industrial machinery and equipment). (4)

According to the new estimates for 2000, States with the fastest growth in real GSP were located in the western and the northeastern areas of the Nation. Idaho, Oregon, California, and Arizona had robust growth in "high-tech" manufacturing, and Colorado had strong growth in business services and communications. Rhode Island, New Hampshire, Massachusetts, New Jersey, and New York had strong growth in finance, insurance, and real estate and in services. In 1992-99, all but two fast-growing States were located in the west, and high-tech manufacturing was the main contributor to growth in these States.

Other highlights of the GSP estimates include the following:

* The revisions to the current-dollar GSP estimates for 1998 and 1999, as a percent of previously published estimates, are small for all States.

* In 2000, private services-producing industries' share of current-dollar GSP increased in 36 States.

* In the slow-growing States, weakness was widespread across industries. Real GSP growth in mining, construction, manufacturing, and wholesale trade declined in many of these States.

The first part of this article discusses the relative performance of various States in terms of growth rates, industry shares of State totals, and State shares of total GSP for the Nation. The second part discusses the revisions to the GSP estimates and the major sources of the revisions.

Growth Rates and Shares

The relative performance of States or particular industries within States can be assessed by examining their real growth rates, their contributions to real GSP growth, their shares of current-dollar GSP, and the composition of current-dollar GSP by industry and State.

Real growth rates

In 2000, the composition of the 10 fastest growing States--that is, the States in the top quintile--changed to include several New England States, New York, and California (chart 1). For most of the decade, New York was in the bottom quintile. California moved into the top quintile in 2000, following a prolonged period of slow recovery from the 1990-91 recession. (5)

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The States in the bottom quintile in 2000 also had grown slowly during most of the 1990s, reflecting the relative importance of slower growing industries--farming, oil and gas extraction, traditional manufacturing industries, and government--to their State economies. In addition, low crude oil prices in the late 1990s contributed to the slow growth of the energy-intensive States of Alaska, Louisiana, and Wyoming.

In 1999-2000, the rate of growth in real GSP for the Nation was 4.5 percent (table 1). Real GSP increased in all States except Louisiana and Alaska. By State, the growth rates ranged from positive 10.7 percent in Rhode Island to negative 2.9 percent in Alaska. The States in the top quintile accounted for 51.7 percent of U.S. growth, and the States in the bottom quintile accounted for 0.7 percent.

Trends in fast-growing States. The fast-growing States are located in the western and eastern portions of the United States. In the western States except for Colorado, a major contributor to the fast growth was high-tech manufacturing. High-tech manufacturing also grew strongly in the eastern States, but their fast growth was mainly attributable to finance, insurance, and real estate and to services.

In Arizona, Idaho, and Oregon, the major contributor to growth in real GSP was durable-goods manufacturing, mainly electronic and other electric equipment. (6) In California, the major contributors were services (mainly business services) and durable-goods manufacturing (mainly electronic and other electric equipment and industrial machinery and equipment). In New Hampshire, the major contributor was durable-goods manufacturing, primarily electronic and other electric equipment. In Colorado, the major contributors were services (mainly business services) and transportation and public utilities (mainly communications). In Massachusetts, services (mainly business services) and finance, insurance, and real estate (mainly security and commodity brokers) were the largest contributors to growth. In Rhode Island and New York, finance, insurance, and real estate (mainly depository institutions and security and commodity brokers) contributed the most to growth. In New Jersey, nondurable-goods manufacturing (mainly chemicals and allied products) and finance, insurance, and real estate (mainly security and commodity brokers) were the major contributors to growth.

Each of the fast-growing States also had fast growth in GSP per employee (table 2). (7) Idaho, New Hampshire, California, Colorado, and Arizona had population growth above the national growth rate. All the States except Oregon had employment growth above the national growth rate.

Trends in the slow-growing States. Declines in Alaska and Louisiana and slow growth in Wyoming reflected a decline in mining, primarily oil and gas extraction (table 3). In Mississippi and Delaware, declines in manufacturing industries, mainly petroleum and coal products and motor vehicles and equipment manufacturing, contributed the most to slow growth.

Each of the slow-growing States also had slow growth in GSP per employee. All of these States except Arkansas and Delaware had population growth below the national growth rate. All of these States except Alaska, Hawaii, and Wyoming had employment growth below the national growth rate.

Shares of current-dollar GSP

Industry shares. The long-term trend of increasing shares in services-producing industries and declining shares in goods-producing industries and in government continued in 2000. The share of U.S. current-dollar GSP accounted for by private services-producing industries increased from 65.1 percent in 1999 to 65.3 percent in 2000 (table 4). (8) The share accounted for by private goods-producing industries declined from 23.2 percent to 23.1 percent. (9) The share accounted for by government declined from 11.7 percent to 11.6 percent. (10)

By State, the change in the share of the private services-producing industries ranged from an increase of 2.3 percentage points in Rhode Island to a decline of 1.5 percentage points in Alaska. In Rhode Island, the largest increase in share was in finance, insurance, and real estate, mainly depository institutions. In Alaska, the largest declines were in retail trade and in finance, insurance, and real estate, mainly in real estate.

The changes in the shares of the private goods-producing industries ranged from an increase of 2.5 percentage points in Alaska to a decline of 1.7 percentage points in Rhode Island. In Alaska, the largest increase was in mining, mainly oil and gas extraction. In Rhode Island, the largest decline was in durable-goods manufacturing, primarily miscellaneous manufacturing industries.

The changes in the share for government ranged from an increase of 0.5 percentage point in West Virginia to a decline of 0.9 percentage point in Alaska. In West Virginia, the increase in share was accounted for by Federal civilian government and by State and local government. In Alaska, the decline in share primarily reflected a decline in State and local government.

State shares

Chart 2 shows the relative size of the State economies in terms of each State's share of current-dollar GSP for the Nation. The States with the five largest shares and the States with the five smallest shares were the same in 2000 as they had been throughout the 1990s. California had the largest share (13.5 percent), followed by New York (8.0 percent), Texas (7.5 percent), Florida (4.7 percent), and Illinois (4.7 percent). North Dakota, Vermont, Wyoming, Montana, and South Dakota had the smallest shares.

Composition of GSP