Politics

Texas Booms (+3.9%) as California Flatlines (0.1%); Mining, Manufacturing Drive Growth

Texas, the nation’s second most populous state, had the fastest growing economy in the nation in the first quarter of this year with its state GDP growing at a real annual rate of 3.9 percent, according to data released today by the Bureau of Economic Analysis.

By contrast, California, the nation’s most populous state, ranked 42nd out of 50 states for first quarter economic growth, with its GDP growing at a real annual rate of just 0.1 percent.

Nebraska had the worst economic performance of any state in the first quarter, with its real GDP declining at an annual rate of 4.0 percent.

West Virginia had the second best economic performance in the first quarter with its GDP growing at an annual rate of 3.0 percent. New Mexico had the third best performanc with its GDP growing 2.8 percent.

The Texas economy, according to BEA, was driven up by a boom in the mining sector and by a large increase in manufacturing. California’s economy was dragged down by the arts, entertainment and recreation sector; finance and insurance; retail trade; and agriculture, forestry, fishing and hunting.

California still has by far the largest economy of any state, with its GDP at an annual rate of $2,670,788,000,000 in the first quarter of this year, according to BEA. Texas remained a distant second, with its GDP at $1,682,888,000,000 in the first quarter.

That made California’s GDP $987,900,000,000 (or 58.7 percent) more than Texas’s annual GDP as of the first quarter.

When divided by the Census Bureau’s July 2016 population estimates, California (with a population of 39,250,017) had a per capita GDP of $68,045.52. Texas (with a population of 27,862,596) had a per capita GDP of $60,399.54.

At $1,500,994,000,000, New York ranked third among the states for GDP as of the first quarter.

Florida ranked fourth with a GDP of $955,647,000,000.

The 3.9 percent growth in Texas was largely driven by the mining industry, which contributed 2.08 points to that 3.9 percent growth.

Manufacturing contributed another 1.15 points (including 0.62 for manufacturing of nondurable goods and 0.53 for durable goods); real estate and rental leasing added 0.43 points; administrative and waste management services added 0.32; government added 0.21; construction added 0.15; transportation and warehousing added 0.15; health care and social assistance added 0.14; accommodation and food services added 0.08; education services added 0.06; arts, entertainment and recreation added 0.02; professional, scientific and technical services added 0.01; and other services except government was flat at 0.00.

Like many states in the first quarter, the agriculture, forestry, fishing and hunting sector had a negative impact on the Texas economy—taking 0.27 points away from the state’s growth. Finance and insurance subtracted 0.17 from the Texas economy; information subtracted 0.17; retail trade subtracted 0.15; utilities subtracted 0.10; management of companies and enterprises subtracted 0.03; and wholesale trade subtracted 0.01.

By contrast, California’s meager 0.1 percent growth was led by an 0.32-point contribution from the real estate and rental leasing sector.

California also had positive contributions from wholesale trade (0.29), construction (0.19), nondurable goods manufacturing (0.16), administrative and waste management services (0.12), health care and social assistance (0.12), information (0.10), mining (0.04), durable goods manufacturing (0.04) accommodation and food services (0.04), educational services (0.03), professional, scientific and technical services (0.02) and government (0.02).

Sectors that put a drag on California’s economy included other services except government (-0.01); transportation and warehousing (-0.02); management of companies and enterprises (-0.03), utilities (-0.07); arts, entertainment, and recreation (-0.12); finance and insurance (-0.19); retail trade (-0.28), and agriculture, forestry, fishing and hunting (-0.68).

“Mining grew 21.6 percent nationally,” the BEA said in the press release it put out with the state GDP numbers. “This industry contributed to growth in 48 states. It was the leading contributor to growth in Texas, West Virginia, and New Mexico—the three fastest growing states—which grew 3.9 percent, 3.0 percent, and 2.8 percent, respectively.”

“Durable-goods manufacturing grew 4.4 percent nationally,” said BEA. “This industry contributed to growth in 47 states and the District of Columbia. The largest contributions to growth occurred in Michigan and Kentucky; these states grew 1.5 percent and 1.8 percent, respectively.:

“Agriculture, forestry, fishing, and hunting declined 39.8 percent nationally,” said BEA. “This industry subtracted from growth in 39 states. The largest subtractions occurred in South Dakota, Iowa, and Nebraska, the states with the largest declines in real GDP. Real GDP in these states declined 3.8 percent, 3.2 percent, and 4.0 percent, respectively.”


From - CNSNews.com - by Terrence P. Jeffrey

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Doodlebug
4 years ago

I am a native Texan and have lived here most of my 62 years. Was exiled due to job to Colorado for two years and California for four years. Could not wait to get home. People in Colorado were hateful as heck to find I was from Texas….Californians were much nicer but the laws in that state are whack. As a child I lived in Georgia in the early sixties so don’t have a real opinion of that state except to say is was a quick trip to everywhere…I am a Texas patriot, loud and proud. Welcome to Texas as long as you keep your stinkin’ thinkin’ out of our fair state.

Martha C. In Austin
4 years ago

With all of the Libs moving from California to Texas I worry how long it will be until we’re threatened with businesses moving out due to higher taxes, unionisation, etc.

Ivan Berry
5 years ago

One satisfaction is that $60,000 in Texas goes so much farther than the $68,000 does in California.
Given that the real estate and rentals were so much more of the Calif. economy and the total disparity in prices for same in Texas, as a portion of GDP, cost of living is a real issue these figures do not address.
Oh, and before anyone might be interested in moving to Texas in an attempt to better themselves, just remember that it gets well over 100 degrees F in the summer with heavy humidity so that the sweat just runs off in sheets. That gets your sheets very wet and uncomfortable. In winter with a blue norther coming down the tier States, the drop in temperature could be in excess of 40 degrees in just a matter of a few hours.
Also Texas is still in the process of keeping men out of womens’ restrooms, you know, the trans fans, etc. So, do look before you leap. And we have no legal pot, what?

Trap
4 years ago
Reply to  Ivan Berry

TX vs CA is no contest. IMO no legal pot is good and I wish there was none period. Men out of women’s bathrooms a very good thing. I is hot in lot’s of places and I stay away from them as much as possible.

God Bless America
Trap

PaulE
4 years ago
Reply to  Ivan Berry

Ha. Love the response Ivan. Yeah definitely discourage the whiny, drug-addled, snowflake types from coming to your state. :-)

Martha C. In Austin
4 years ago
Reply to  PaulE

Amen brother!

Ivan Berry
4 years ago
Reply to  PaulE

Sure hope so, PaulE. And say, did you notice my comment was made 27days and 19hours ago? Wonder how that happened.

Rik
4 years ago
Reply to  Ivan Berry

Hi Ivan, I’m from True Blue Connecticut originally but I escaped 27 years ago to Darkest Blue California. The weather is terrific here but the politics are totally whacko. Over 9,000 businesses have escaped California since 2008, geez, I wonder why??? Ha ha! … This state is so whacked out money wise they need more, so guess what? … In Commie California, they just increase the tax on gasoline by 32 cents a gallon. See how easy it is to balance the budget. The general populace here are so stupid, they’ll do their part and drive more, so there. We don’t just have sanctuary cities here, we’re a sanctuary state. We’ve probably got 12-14 million illegals here alone. I believe we have more Mexican restaurants than all others combined. So come on by and pig out on a diet burrito, or is that just the soda, oh well!

Danny
4 years ago
Reply to  Rik

Commiefornia sounds a lot like the Jersey Gulag.

Ivan Berry
4 years ago
Reply to  Rik

Rik, you probably have more Mexicans than all others as well, but should you come to Texas, just remember that were it not for our TexMex food most Texans would starve. Along side Soul food (which is really just country cooking), TexMex is our national cuisine.

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