Gross State Product by Industry, 1992-99.

Beemiller, Richard M. ; Downey, George K.

NEW estimates of gross state product (GSP) for 1999 and revised estimates for 1992-98 were released by the Bureau of Economic Analysis (BEA) on June 4, 2001.(1) These estimates incorporate the results of the July 2000 revision of the national income and product accounts (NIPA's) and the most recent revision of State personal income published in the October 2000 SURVEY OF CURRENT BUSINESS, and they are consistent with the estimates of gross domestic product by industry for the Nation published in the December 2000 SURVEY.(2)

The major highlights of the GSP estimates for 1992-99 are the following:

* Most of the fastest growing States had strong growth in some high-tech manufacturing industries and in business services.(3)

* The growth rates of the more traditional manufacturing industries in the Great Lakes region were considerably higher than during the 1983-90 expansion, although they were less than the growth rates of the high-tech manufacturing industries.

* In the fast-growing States of Arizona, Oregon, New Hampshire, New Mexico, and Idaho, the rapid growth in high-tech manufacturing led to increases in the shares of manufacturing.

* In the slowest growing States, farms, mining, construction, nondurable-goods manufacturing, and Federal Government showed weakness or declines in growth.

* The revisions to GSP for 1992-98, as a percent of the previously published estimates, are generally small for all years.

The first part of this article provides historical perspective for the 1992-99 growth in GSP. The second part discusses the relative performance for selected States in terms of growth rates, industry shares of State totals, State shares of total GSP for the Nation, and the composition of GSP for BEA regions. The third part discusses the revisions to the GSP estimates and the major sources of the revisions.

1992-99 GSP Growth in Perspective

The revised and new GSP estimates for 1992-99 cover a period of the current economic expansion, which began after the 1990-91 recession and is still underway. In order to provide perspective, the trends in the U.S. and State economies for 1992-99 can be compared with those for 1983-90, the previous expansionary period.

From 1992 to 1999, real U.S. GSP grew at an annual rate of 4.0 percent, compared with a 3.8-percent rate in 1983-90; in comparison, real gross domestic product (GDP)--BEA's featured measure of the Nation's output--grew at an annual rate of 3.7 percent in 1992-99, compared with a 3.9-percent rate in 1983-90.(4) During the current expansion, growth has been concentrated in western States; in the previous expansion, growth was concentrated in the coastal regions, largely reflecting strength in defense-related industries. The slower growth in many of the interior States during the previous expansion, particularly those in the Rocky Mountain and Southwest regions, reflected weakness in oil and gas extraction, coal mining, and related activities due to declining energy prices. (charts 1 and 2).(5)

[ILLUSTRATIONS OMITTED]

For 1992-99, real GSP increased in all States except Hawaii (table 1). The average annual growth rates ranged from a high of 7.3 percent in Arizona to a low of -0.3 percent in Hawaii. For 1983-90, the growth rates ranged from a high of 6.5 percent in Nevada to a low of -0.2 percent in North Dakota.

Table 1.--Average Annual Percent Change in Real Gross
State Product, 1992-99

 Agri-
 Total culture,
 gross state forestry, Mining
 product and
 fishing

United States 4.0 2.1 3.5
 New England 4.1 2.6 2.3
 Connecticut 3.4 3.3 8.5
 Maine 2.6 3.3 -11.8
 Massachusetts 4.7 2.3 -1.1
 New Hampshire 6.3 3.3 4.5
 Rhode Island 3.0 -.4 -3.5
 Vermont 3.0 2.0 1.9

Mideast 2.9 2.1 10.3
 Delaware 3.2 3.4 -12.0
 District of Columbia .3 1.7 12.2
 Maryland 3.0 2.4 8.9
 New Jersey 2.9 3.9 9.5
 New York 3.1 2.3 4.9
 Pennsylvania 2.8 .9 12.0

Great Lakes 3.9 .3 2.8
 Illinois 3.9 -2.2 .8
 Indiana 4.0 -1.7 6.6
 Michigan 3.9 3.4 -2.8
 Ohio 3.6 .4 8.1
 Wisconsin 4.1 2.2 .5

Plains 3.8 -2.1 3.7
 Iowa 3.5 -4.1 5.8
 Kansas 3.4 -1.3 2.0
 Minnesota 4.5 .6 7.5
 Missouri 3.6 -1.2 3.5
 Nebraska 3.4 -2.9 -3.5
 North Dakota 2.5 -8.2 6.2
 South Dakota 3.6 .1 -4.5

Southeast 4.2 2.7 6.2
 Alabama 3.1 5.2 8.6
 Arkansas 3.7 3.6 3.8
 Florida 4.2 3.3 .8
 Georgia 5.8 5.2 8.4
 Kentucky 4.0 -1.2 5.3
 Louisiana 3.1 1.9 7.0
 Mississippi 3.7 5.4 2.2
 North Carolina 5.1 1.8 14.2
 South Carolina 3.9 3.5 2.2
 Tennessee 4.1 -.9 4.3
 Virginia 3.6 .6 5.5
 West Virginia 2.4 -1.2 6.5

Southwest 5.5 4.1 2.1
 Arizona 7.3 5.0 4.5
 New Mexico 6.2 5.3 7.9
 Oklahoma 3.1 2.6 3.0
 Texas 5.4 4.2 1.3

Rocky Mountain 5.9 3.4 2.4
 Colorado 6.6 5.3 9.0
 Idaho 6.6 3.4 4.4
 Montana 2.7 -.4 2.2
 Utah 6.3 4.6 1.8
 Wyoming 2.5 1.1 -.4

Far West 4.1 3.8 3.4
 Alaska .5 -1.1 -.6
 California 3.9 4.1 7.2
 Hawaii -.3 -.1 .2
 Nevada 7.0 8.7 4.6
 Oregon 6.8 5.7 7.3
 Washington 4.7 1.6 5.2

 Transpor-
 Construc- Manufac- tation and
 tion turing public
 utilities

United States 4.1 5.0 4.4
 New England 4.9 4.9 2.5
 Connecticut 1.1 3.8 2.3
 Maine 1.0 2.4 2.0
 Massachusetts 7.5 5.2 2.7
 New Hampshire 5.9 11.4 2.6
 Rhode Island 7.8 -.5 3.5
 Vermont 1.1 4.8 1.0

Mideast 1.6 2.0 3.1
 Delaware 4.2 -.6 3.5
 District of Columbia -3.0 -2.7 1.4
 Maryland 2.3 3.6 3.7
 New Jersey 1.9 .2 4.1
 New York 1.3 .9 2.7
 Pennsylvania 1.3 4.4 2.8

Great Lakes 4.0 4.9 3.6
 Illinois 2.7 5.0 4.1
 Indiana 3.6 5.9 2.4
 Michigan 6.8 4.4 4.3
 Ohio 4.1 4.6 2.5
 Wisconsin 3.2 5.4 4.1

Plains 4.4 4.2 4.5
 Iowa 3.3 5.0 4.9
 Kansas 4.7 3.2 5.9
 Minnesota 4.4 4.6 4.7
 Missouri 4.8 2.9 3.6
 Nebraska 5.4 4.7 4.9
 North Dakota 5.1 10.8 2.9
 South Dakota 2.9 10.4 3.8

Southeast 5.2 3.2 4.5
 Alabama 4.1 1.9 2.3
 Arkansas 5.0 4.0 2.8
 Florida 4.3 3.2 4.8
 Georgia 9.3 5.0 6.9
 Kentucky 3.7 5.5 3.8
 Louisiana 2.2 3.0 1.9
 Mississippi 6.6 2.5 1.5
 North Carolina 7.2 3.0 4.0
 South Carolina 6.1 2.3 6.1
 Tennessee 5.4 3.0 5.1
 Virginia 3.7 1.6 5.5
 West Virginia .9 2.7 .5

Southwest 5.2 9.8 5.7
 Arizona 7.6 13.2 5.5
 New Mexico 2.6 19.9 3.8
 Oklahoma 5.3 4.6 2.7
 Texas 4.8 9.1 6.3

Rocky Mountain 7.9 7.5 8.0
 Colorado 8.3 5.0 10.5
 Idaho 5.5 15.6 4.9
 Montana 5.0 3.0 3.2
 Utah 10.1 7.0 6.7
 Wyoming 5.6 9.4 4.0

Far West 3.6 8.1 5.4
 Alaska 2.4 -.8 2.9
 California 3.2 8.0 5.5
 Hawaii -7.9 -4.3 2.4
 Nevada 13.8 9.8 8.0
 Oregon 6.6 16.0 3.9
 Washington 2.3 3.2 6.2

 Finance,
 Wholesale Retail insurance,
 trade trade and real
 estate

United States 6.9 5.8 3.9
 New England 7.2 5.5 4.8
 Connecticut 5.2 5.0 4.1
 Maine 5.8 4.9 2.8
 Massachusetts 8.2 5.7 5.5
 New Hampshire 10.8 7.1 5.3
 Rhode Island 6.0 4.9 4.9
 Vermont 4.2 4.5 2.5

Mideast 5.3 4.4 4.4
 Delaware 6.7 5.9 3.6
 District of Columbia 2.4 1.6 1.4
 Maryland 6.3 4.2 2.9
 New Jersey 5.7 4.5 3.6
 New York 4.7 4.4 5.8
 Pennsylvania 5.4 4.4 2.0

Great Lakes 6.7 5.7 3.0
 Illinois 5.8 4.9 3.8
 Indiana 7.0 5.7 2.4
 Michigan 7.6 6.8 1.6
 Ohio 7.1 5.7 3.0
 Wisconsin 7.0 6.1 3.0

Plains 6.9 5.9 3.5
 Iowa 7.1 4.9 2.5
 Kansas 7.0 6.1 1.5
 Minnesota 7.8 6.5 4.9
 Missouri 6.1 5.8 3.8
 Nebraska 5.9 5.7 3.0
 North Dakota 6.2 5.3 1.5
 South Dakota 7.3 6.0 1.9

Southeast 7.7 6.4 4.5
 Alabama 6.9 5.9 4.6
 Arkansas 7.4 6.9 2.6
 Florida 8.2 6.3 4.1
 Georgia 8.6 8.1 4.9
 Kentucky 8.2 6.1 2.2
 Louisiana 5.8 5.8 1.8
 Mississippi 6.9 6.3 2.2
 North Carolina 7.0 6.2 9.4
 South Carolina 8.9 7.0 3.9
 Tennessee 7.7 6.7 4.6
 Virginia 7.6 5.8 3.7
 West Virginia 4.5 4.2 .8

Southwest 8.8 7.1 4.2
 Arizona 11.2 8.3 6.3
 New Mexico 6.4 5.5 3.5
 Oklahoma 5.2 5.2 1.8
 Texas 8.9 7.3 4.0

Rocky Mountain 9.0 7.7 6.0
 Colorado 9.3 8.3 6.8
 Idaho 8.7 6.5 3.3
 Montana 6.2 4.4 2.1
 Utah 9.5 8.9 7.5
 Wyoming 8.0 5.1 2.5

Far West 6.3 5.4 2.7
 Alaska 5.0 3.8 .7
 California 6.1 5.1 2.5
 Hawaii 2.1 1.6 .1
 Nevada 10.4 10.3 6.7
 Oregon 7.6 6.3 2.8
 Washington 6.4 6.4 3.7

 Services Govern-
 ment

United States 3.5 1.0
 New England 3.4 1.1
 Connecticut 3.2 .4
 Maine 2.8 -.2
 Massachusetts 3.7 1.9
 New Hampshire 3.8 .9
 Rhode Island 2.0 1.1
 Vermont 3.0 1.4

Mideast 2.1 .4
 Delaware 4.2 2.4
 District of Columbia 1.7 -1.2
 Maryland 2.9 1.2
 New Jersey 2.9 .7
 New York 1.7 .3
 Pennsylvania 1.9 .4

Great Lakes 3.2 1.0
 Illinois 3.6 1.4
 Indiana 3.0 1.0
 Michigan 3.5 .3
 Ohio 2.3 1.0
 Wisconsin 3.5 1.0

Plains 3.5 1.1
 Iowa 3.1 1.3
 Kansas 2.9 1.0
 Minnesota 4.0 1.2
 Missouri 3.3 1.9
 Nebraska 4.2 .6
 North Dakota 3.2 -1.4
 South Dakota 3.4 -.2

Southeast 4.3 1.3
 Alabama 2.4 .6
 Arkansas 2.5 1.5
 Florida 4.0 1.4
 Georgia 5.9 2.2
 Kentucky 3.3 .9
 Louisiana 2.2 .7
 Mississippi 5.8 2.5
 North Carolina 5.4 2.1
 South Carolina 4.3 .6
 Tennessee 3.8 1.3
 Virginia 5.3 .3
 West Virginia 2.0 2.2

Southwest 4.8 2.0
 Arizona 6.6 2.7
 New Mexico 2.6 1.1
 Oklahoma 3.2 .5
 Texas 4.8 2.2

Rocky Mountain 5.6 1.6
 Colorado 6.5 1.4
 Idaho 4.0 2.7
 Montana 2.8 .9
 Utah 5.3 2.1
 Wyoming 2.8 .2

Far West 3.6 .6
 Alaska 1.2 -2.1
 California 3.1 .2
 Hawaii -.7 -.7
 Nevada 4.9 4.1
 Oregon 3.8 2.5
 Washington 7.6 1.5

Other economic aggregates generally performed better in the current expansion than in the previous expansion. For example, during the current expansion, the U.S. unemployment rate has averaged 5.6 percent, compared with 6.7 percent during 1983-90. During 1992-99, average State unemployment rates ranged from a low of 2.8 percent in Nebraska to a high of 8.3 percent in West Virginia, compared with a low of 3.8 percent in New Hampshire to a high of 119 percent in West Virginia during 1983-90. Labor productivity in the United States, as measured by real GSP per employee, increased at an average annual rate of 1.7 percent, compared with 1.2 percent in 1983-90.(6) For the Nation, inflation, as measured by the chain-type price index for real GDP, averaged 2.0 percent in 1992-99, compared with 3.7 percent in 1983-90.

Growth Rates, Shares, and Composition in 1992-99

Various measures can be used to compare the relative performance of States' economies and of industries within States' economies. Two measures of a State's economic performance are growth rates of real GSP, which can be used to compare the relative growth of a State and of the State's various industries across time, and current-dollar shares of GSP, which provide an indication of whether an industry's claim on overall State resources is increasing or decreasing and if a State's claim on national resources is changing. Another related measure of a State's economic performance is real GSP per employee, which in 1999 ranged from $70,535 in New York to $36,128 in Montana (table 2). The following sections discuss State trends in GSP growth and related statistics and the changing composition of GSP.

Table 2.--Real Gross State Product Per Employee, 1992-99

 [Chained (1996) dollars]

 1992 1993 1994 1995

 United States 48,636 48,728 49,487 49,779

New England 51,308 51,263 52,201 53,145
 Connecticut 59,875 59,682 61,103 61,611
 Maine 39,398 39,109 39,127 39,724
 Massachusetts 52,044 52,153 53,456 54,404
 New Hampshire 44,780 44,513 44,847 47,574
 Rhode Island 46,630 46,883 47,190 48,362
 Vermont 39,267 39,177 39,025 36,699

Mideast 56,967 57,251 57,987 58,459
 Delaware 61,589 61,252 62,224 63,198
 District of Columbia 66,623 67,495 68,588 68,026
 Maryland 50,383 50,719 51,353 50,841
 New Jersey 61,396 62,049 62,744 63,377
 New York 61,809 61,769 62,820 63,366
 Pennsylvania 47,993 48,510 48,903 49,760

Great Lakes 46,755 47,268 48,476 48,380
 Illinois 51,301 51,535 52,952 53,246
 Indiana 42,516 42,994 44,009 44,011
 Michigan 47,326 48,914 50,883 49,792
 Ohio 46,055 45,917 46,825 47,030
 Wisconsin 41,811 42,624 42,966 42,942

Plains 41,695 41,013 42,242 42,392
 Iowa 39,342 38,908 41,147 40,608
 Kansas 40,921 40,604 41,565 40,685
 Minnesota 44,084 43,360 44,426 44,271
 Missouri 42,666 41,607 42,983 43,987
 Nebraska 41,047 40,212 41,113 41,861
 North Dakota 35,902 34,510 35,268 35,564
 South Dakota 38,285 39,155 38,715 39,440

Southeast 44,295 44,375 45,408 45,675
 Alabama 42,055 41,465 42,539 42,704
 Arkansas 38,494 38,273 39,487 39,225
 Florida 46,003 46,057 46,362 46,273
 Georgia 47,118 46,978 48,133 48,806
 Kentucky 41,703 42,088 43,635 43,592
 Louisiana 49,001 48,877 51,469 52,549
 Mississippi 38,604 38,489 39,363 40,198
 North Carolina 42,646 42,768 44,497 44,971
 South Carolina 40,780 41,292 42,330 42,658
 Tennessee 42,679 42,866 43,549 43,700
 Virginia 47,693 48,142 48,692 48,818
 West Virginia 41,552 41,879 43,072 43,208

Southwest 46,231 46,827 47,706 48,099
 Arizona 43,925 44,322 45,459 46,183
 New Mexico 42,432 45,416 48,761 47,100
 Oklahoma 39,983 40,012 39,746 39,571
 Texas 48,283 48,672 49,474 50,071

Rocky Mountain 41,591 42,142 42,194 43,016
 Colorado 43,703 44,294 44,706 45,440
 Idaho 36,900 38,354 38,815 40,696
 Montana 36,090 36,368 35,444 35,134
 Utah 39,593 39,594 39,541 40,479
 Wyoming 51,420 52,261 50,879 51,537

Far West 53,191 53,045 53,022 53,453
 Alaska 71,097 70,426 68,923 71,577
 California 54,833 54,457 54,594 55,104
 Hawaii 51,885 51,759 51,439 51,166
 Nevada 51,094 51,765 51,531 51,706
 Oregon 41,647 42,669 42,683 43,698
 Washington 49,276 49,808 49,518 49,222

 [Chained (1996) dollars]

 1996 1997 1998 1999

 United States 50,567 51,812 53,101 54,563

New England 54,374 56,170 57,879 60,399
 Connecticut 62,313 65,667 67,396 69,407
 Maine 40,094 40,764 41,269 41,889
 Massachusetts 56,001 57,144 59,157 62,686
 New Hampshire 49,897 51,282 54,554 56,857
 Rhode Island 48,897 52,129 52,050 53,599
 Vermont 39,566 40,672 41,309 42,247

Mideast 59,702 60,559 61,866 63,362
 Delaware 63,386 64,140 65,441 63,950
 District of Columbia 68,044 69,538 69,594 70,831
 Maryland 51,140 52,169 53,122 54,091
 New Jersey 64,962 65,919 66,543 67,797
 New York 65,323 66,116 68,274 70,535
 Pennsylvania 50,367 51,199 51,944 52,905

Great Lakes 49,047 50,442 51,820 52,821
 Illinois 54,141 55,921 57,245 58,686
 Indiana 44,957 45,870 47,946 48,280
 Michigan 50,046 51,248 51,989 53,049
 Ohio 47,405 48,999 50,467 51,376
 Wisconsin 44,062 45,084 46,660 47,569

Plains 43,485 44,779 45,495 46,258
 Iowa 42,012 43,853 43,360 43,564
 Kansas 41,404 42,610 43,107 44,270
 Minnesota 45,869 47,884 49,148 50,662
 Missouri 44,569 45,605 46,403 46,852
 Nebraska 43,160 43,587 44,099 44,667
 North Dakota 36,909 36,444 38,362 37,550
 South Dakota 40,139 40,279 41,543 41,903

Southeast 46,190 47,007 47,972 48,827
 Alabama 43,211 43,754 44,235 45,693
 Arkansas 40,046 40,647 41,247 42,342
 Florida 46,761 47,175 48,127 48,684
 Georgia 50,125 51,519 53,139 54,537
 Kentucky 44,186 45,304 46,267 46,712
 Louisiana 51,602 52,054 52,132 52,108
 Mississippi 40,301 40,368 40,707 41,437
 North Carolina 45,399 46,903 47,912 49,611
 South Carolina 42,757 43,538 44,200 45,005
 Tennessee 44,052 45,188 46,387 47,061
 Virginia 49,666 50,350 51,772 52,070
 West Virginia 43,513 43,434 43,475 44,244

Southwest 48,926 50,677 52,168 53,629
 Arizona 46,754 47,799 49,802 51,399
 New Mexico 48,073 51,056 53,005 54,154
 Oklahoma 40,109 40,781 41,525 42,242
 Texas 50,998 52,969 54,423 55,989

Rocky Mountain 43,532 44,634 45,989 47,658
 Colorado 46,020 47,915 49,686 51,665
 Idaho 40,424 40,992 42,303 45,060
 Montana 34,462 35,078 35,572 36,128
 Utah 41,942 42,126 43,090 44,022
 Wyoming 51,820 51,644 52,358 53,422

Far West 54,187 55,895 57,535 60,237
 Alaska 69,223 68,888 65,517 66,500
 California 55,609 57,691 59,282 62,308
 Hawaii 50,569 50,751 50,787 51,015
 Nevada 52,408 51,920 52,998 53,303
 Oregon 47,358 48,448 50,749 52,878
 Washington 50,235 51,749 54,232 57,022

 Percent of na-
 tional average

 1992 1999

 United States 100 100

New England 105 111
 Connecticut 123 127
 Maine 81 77
 Massachusetts 107 115
 New Hampshire 92 104
 Rhode Island 96 98
 Vermont 81 77

Mideast 117 116
 Delaware 127 117
 District of Columbia 137 130
 Maryland 104 99
 New Jersey 126 124
 New York 127 129
 Pennsylvania 99 97

Great Lakes 96 97
 Illinois 105 108
 Indiana 87 88
 Michigan 97 97
 Ohio 95 94
 Wisconsin 86 87

Plains 86 85
 Iowa 81 80
 Kansas 84 81
 Minnesota 91 93
 Missouri 88 86
 Nebraska 84 82
 North Dakota 74 69
 South Dakota 79 77

Southeast 91 89
 Alabama 86 84
 Arkansas 79 78
 Florida 95 89
 Georgia 97 100
 Kentucky 86 86
 Louisiana 101 96
 Mississippi 79 76
 North Carolina 88 91
 South Carolina 84 82
 Tennessee 88 86
 Virginia 98 95
 West Virginia 85 81

Southwest 95 98
 Arizona 90 94
 New Mexico 87 99
 Oklahoma 82 77
 Texas 99 103

Rocky Mountain 86 87
 Colorado 90 95
 Idaho 76 83
 Montana 74 66
 Utah 81 81
 Wyoming 106 98

Far West 109 110
 Alaska 146 122
 California 113 114
 Hawaii 107 93
 Nevada 105 98
 Oregon 86 97
 Washington 101 105

Trends in the fastest growing States

Of the 11 fastest growing States in 1992-99, eight are west of the Mississippi River (chart 1).(7) In all 11 States, population growth and job growth were also above the national growth rates. The 11 States together accounted for 28 percent of U.S. growth in 1992-99, and their share of U.S. current-dollar GSP in 1999 was 20 percent. In Arizona, Oregon, Idaho, New Hampshire, and New :Mexico, a major contributor to the fast growth was high-tech manufacturing, mainly electronic and other electric equipment and industrial machinery and equipment. In the other States, major contributors to growth were wholesale and retail trade and, except for in Nevada, business services. In Nevada, growth in construction and in hotels and other lodging places was also strong, largely reflecting casino gambling. In Colorado, growth was strong in communications; and in North Carolina, depository institutions (table 3).

Table 3.--Contributions to Percent Change in Real Gross State
Product, 1992-99

 Average Percentage points
 annual
 percent Agri-
 change culture,
 in real forestry, Mining Construc-
 gross state and tion
 product fishing

 United States 4.0 0.03 0.05 0.17

New England 4.1 .02 0 .17
 Connecticut 3.4 .02 .01 .04
 Maine 2.6 .07 0 .04
 Massachusetts 4.7 .01 0 .26
 New Hampshire 6.3 .03 0 .22
 Rhode Island 3.0 0 0 .33
 Vermont 3.0 .05 .01 .05

Mideast 2.9 .01 .02 .06
 Delaware 3.2 .03 0 .16
 District of Columbia .3 0 0 -.03
 Maryland 3.0 .02 .01 .12
 New Jersey 2.9 .02 .01 .07
 New York 3.1 .01 0 .04
 Pennsylvania 2.8 .01 .07 .05

Great Lakes 3.9 0 .01 .17
 Illinois 3.9 -.02 0 .12
 Indiana 4.0 -.02 .03 .17
 Michigan 3.9 .03 -.01 .28
 Ohio 3.6 0 .03 .16
 Wisconsin 4.1 .05 0 .14

Plains 3.8 -.08 .02 .19
 Iowa 3.5 -.22 .01 .13
 Kansas 3.4 -.05 .03 .19
 Minnesota 4.5 .01 .04 .20
 Missouri 3.6 -.02 .01 .21
 Nebraska 3.4 -.20 -.01 .22
 North Dakota 2.5 -.60 .21 .23
 South Dakota 3.6 .01 -.04 .11

Southeast 4.2 .05 .09 .23
 Alabama 3.1 .11 .11 .17
 Arkansas 3.7 .15 .03 .20
 Florida 4.2 .06 0 .20
 Georgia 5.8 .08 .04 .38
 Kentucky 4.0 -.03 .15 .16
 Louisiana 3.1 .02 .72 .10
 Mississippi 3.7 .15 .02 .26
 North Carolina 5.1 .04 .02 .31
 South Carolina 3.9 .04 0 .31
 Tennessee 4.1 -.01 .01 .21
 Virginia 3.6 .01 .03 .16
 West Virginia 2.4 -.01 .53 .04

Southwest 5.5 .07 .12 .23
 Arizona 7.3 .08 .05 .40
 New Mexico 6.2 .12 .64 .10
 Oklahoma 3.1 .07 .15 .17
 Texas 5.4 .06 .09 .21

Rocky Mountain 5.9 .09 .09 .42
 Colorado 6.6 .09 .14 .44
 Idaho 6.6 .22 .03 .34
 Montana 2.7 -.02 .10 .23
 Utah 6.3 .06 .05 .54
 Wyoming 2.5 .03 -.11 .24

Far West 4.1 .08 .03 .15
 Alaska .5 -.02 -.11 .08
 California 3.9 .08 .04 .12
 Hawaii -.3 0 0 -.41
 Nevada 7.0 .06 .14 1.06
 Oregon 6.8 .17 .01 .32
 Washington 4.7 .04 .01 .11

 Percentage points

 Transpor-
 Manufac- tation and Wholesale Retail
 turing public trade trade
 utilities

 United States 0.84 0.38 0.47 0.52

New England .82 .16 .47 .46
 Connecticut .68 .15 .34 .39
 Maine .40 .15 .34 .58
 Massachusetts .80 .17 .58 .45
 New Hampshire 2.49 .17 .65 .69
 Rhode Island -.07 .24 .31 .44
 Vermont .92 .08 .24 .42

Mideast .27 .25 .34 .33
 Delaware -.10 .18 .26 .41
 District of Columbia -.07 .07 .03 .04
 Maryland .30 .28 .38 .38
 New Jersey .03 .39 .52 .34
 New York .10 .21 .29 .31
 Pennsylvania .86 .25 .33 .39

Great Lakes 1.20 .29 .47 .51
 Illinois .86 .39 .47 .41
 Indiana 1.81 .20 .41 .51
 Michigan 1.18 .29 .54 .63
 Ohio 1.23 .20 .48 .54
 Wisconsin 1.45 .30 .44 .55

Plains .80 .43 .52 .55
 Iowa 1.18 .40 .52 .44
 Kansas .56 .70 .53 .59
 Minnesota .88 .36 .62 .60
 Missouri .60 .37 .45 .55
 Nebraska .68 .51 .46 .48
 North Dakota .81 .30 .53 .50
 South Dakota 1.28 .32 .48 .61

Southeast .58 .41 .52 .63
 Alabama .39 .21 .43 .58
 Arkansas .94 .31 .46 .75
 Florida .26 .42 .60 .71
 Georgia .89 .79 .77 .73
 Kentucky 1.45 .32 .47 .56
 Louisiana .49 .19 .33 .51
 Mississippi .56 .16 .39 .65
 North Carolina .79 .31 .45 .57
 South Carolina .57 .51 .51 .73
 Tennessee .69 .42 .56 .73
 Virginia .23 .48 .41 .49
 West Virginia .42 .06 .24 .40

Southwest 1.43 .58 .62 .68
 Arizona 1.90 .43 .70 .88
 New Mexico 3.07 .30 .27 .52
 Oklahoma .82 .26 .31 .52
 Texas 1.29 .68 .67 .68

Rocky Mountain .91 .85 .54 .75
 Colorado .58 1.18 .58 .81
 Idaho 2.96 .40 .54 .67
 Montana .23 .38 .38 .44
 Utah .96 .60 .58 .91
 Wyoming .50 .57 .28 .36

Far West 1.11 .40 .41 .50
 Alaska -.03 .39 .12 .21
 California 1.14 .39 .40 .47
 Hawaii -.13 .24 .08 .17
 Nevada .38 .65 .47 1.02
 Oregon 3.42 .30 .58 .56
 Washington .44 .48 .46 .63

 Percentage points

 Finance,
 insurance Services Govern-
 and real ment
 estate

 United States 0.73 0.72 0.13

New England 1.13 .79 .12
 Connecticut 1.10 .66 .04
 Maine .50 .53 -.03
 Massachusetts 1.28 .96 .18
 New Hampshire 1.19 .76 .08
 Rhode Island 1.19 .43 .14
 Vermont .42 .61 .17

Mideast 1.09 .49 .05
 Delaware 1.38 .61 .22
 District of Columbia .17 .56 -.46
 Maryland .61 .67 .23
 New Jersey .81 .64 .07
 New York 1.76 .39 .03
 Pennsylvania .36 .43 .04

Great Lakes .49 .61 .11
 Illinois .76 .78 .15
 Indiana .32 .48 .11
 Michigan .24 .66 .04
 Ohio .45 .42 .11
 Wisconsin .46 .60 .11

Plains .53 .65 .14
 Iowa .36 .49 .16
 Kansas .20 .48 .14
 Minnesota .85 .80 .13
 Missouri .56 .65 .22
 Nebraska .44 .74 .09
 North Dakota .20 .55 -.21
 South Dakota .35 .55 -.02

Southeast .70 .81 .19
 Alabama .61 .40 .10
 Arkansas .30 .39 .19
 Florida .86 .95 .18
 Georgia .75 1.08 .29
 Kentucky .25 .51 .13
 Louisiana .24 .37 .09
 Mississippi .25 .87 .40
 North Carolina 1.45 .85 .29
 South Carolina .51 .66 .11
 Tennessee .61 .74 .16
 Virginia .62 1.08 .07
 West Virginia .09 .33 .32

Southwest .62 .92 .26
 Arizona 1.16 1.38 .36
 New Mexico .47 .49 .21
 Oklahoma .22 .55 .09
 Texas .58 .91 .26

Rocky Mountain .92 1.11 .24
 Colorado 1.15 1.44 .20
 Idaho .41 .65 .38
 Montana .28 .52 .15
 Utah 1.14 1.08 .34
 Wyoming .26 .30 .02

Far West .55 .81 .07
 Alaska .06 .12 -.36
 California .55 .70 .03
 Hawaii .02 -.14 -.14
 Nevada 1.11 1.63 .46
 Oregon .44 .68 .33
 Washington .66 1.64 .22

The growth in real GSP per employee was above the national average annual rate of 1.7 percent in 1992-99 for all these States except Nevada and Utah (chart 3). In both States, the slower growth in productivity was mainly due to the growth in the relatively low-wage industries of retail and wholesale trade, and, in Nevada, hotels and other lodging places.

[ILLUSTRATION OMITTED]

California and Washington were noticeably absent from the fast-growing western States. In California, which accounts for the largest share (13 percent) of the Nation's GSP and which has a heavy concentration of high-tech industries, real GSP grew at an average annual rate of 3.9 percent, considerably less than its neighboring fast-growing States. The slow growth in California mainly reflected its delayed recovery from the 1990-91 recession and weakness in the following industries: Federal Government (both military and civilian); defense-related durable-goods manufacturing, mainly other transportation equipment; health services; and finance, insurance, and real estate, mainly insurance carriers and depository institutions. In Washington, real GSP growth was above average at 4.7 percent, but strong increases in business services, trade, and real estate were partly offset by declines in depository institutions, transportation equipment excluding motor vehicles, and lumber and wood products.

Trends in the slowest growing States

In the 12 slowest growing States except Montana, growth in both population and employment was below national growth rates, and in all these States except Rhode Island, growth in real GSP per employee was below the national growth rate.

In general, these States lagged behind in the economic expansion because of the importance of farming, oil and gas extraction, traditional manufacturing industries, and government in their economic bases. In Alaska and Wyoming, the slow growth mainly reflected a decline in oil and gas extraction due to low crude oil prices in the late 1990s. In Maine and North Dakota, the slow growth reflected a decline in Federal Government. In Montana and North Dakota, the slow growth reflected a decline in agriculture, forestry, and fishing--mainly farms. In Hawaii, the decline in real GSP reflected the State's slow recovery from the 1990-91 recession and the effects of the 1998 Asian financial crisis on growth in tourism, in exports of agriculture-related products, and in the construction industries. In Pennsylvania, Maryland, and West Virginia, the slow growth reflected declines in finance, mainly depository institutions; in Pennsylvania, the slow growth also reflected declines in nondurable-goods manufacturing, mainly in petroleum and coal products. In New Jersey, Maryland, and Vermont, the slow growth reflected declines in manufacturing, mainly printing and publishing. In New Jersey and Maryland, it also reflected declines in instruments and related products, and in Vermont, paper and allied products.

The 12 slowest growing States accounted for less than 10 percent of U.S. growth in 1992-99, and their share of current-dollar U.S. GSP was 12 percent in 1999.

Trends in States with near-average growth

The growth rates of the States in the Plains and Great Lakes regions except for North Dakota were close to the national growth rate in 1992-99. In the Plains, the average annual growth of real GSP ranged from 2.5 percent in North Dakota to 4.5 percent in Minnesota. Growth was held down by a weak farm sector, as the prices received for all farm products declined at an average annual rate of 0.3 percent in 1992-99.(8) Real farm income declined at an average annual rate of 2.1 percent.(9) Excluding farms, the average annual growth rates in real GSP were significantly higher, ranging from 4.0 percent in North Dakota to 5.4 percent in Minnesota.

In the Great Lakes region, the average annual growth of real GSP ranged from 3.6 percent in Ohio to 4.1 percent in Wisconsin. The growth rates in the region's manufacturing base--primary metals (4.7 percent), fabricated metals (5.3 percent), and motor vehicles and equipment (5.6 percent)--were higher than in the previous expansion.(10) Growth in the region's high-tech manufacturing--industrial machinery and equipment (11.5 percent) and electronic and other electric equipment (15.0 percent)--was also strong. The growth rate in real GSP per employee exceeded the national rate in all States except Michigan and Ohio.

Most of the other States with growth rates that were about average were in the Southeast region. In these States, the major contributors to the growth tended to be wholesale and retail trade.

Shares of current-dollar GSP

Industry shares.--In 1992-99, the share of U.S. current-dollar GSP accounted for by private services-producing industries increased 2.9 percentage points, from 62.2 percent to 65.1 percent (table 4).(11) The share accounted for by private goods-producing industries declined 1.3 percentage points, from 24.4 percent to 23.1 percent. The share accounted for by government declined 1.5 percentage points, from 13.3 percent to 11.8 percent.

Table 4.--Gross State Product By Broad Industry Group in Current
Dollars and As a Percentage of Total Gross State Product, 1992 and 1999

 Millions of dollars

 1992

 Total Private Private
 gross goods- services-
 state producing producing
 product industries(1) industries(2)

 United States 6,209,096 1,515,727 3,865,105

New England 357,145 78,702 240,486
 Connecticut 103,794 23,677 70,168
 Maine 24,397 5,724 14,754
 Massachusetts 167,334 33,972 116,402
 New Hampshire 26,396 6,740 17,026
 Rhode Island 22,656 5,150 14,567
 Vermont 12,570 3,440 7,569

Mideast 1,234,406 229,247 844,606
 Delaware 23,069 5,536 15,332
 District of Columbia 44,458 1,733 24,556
 Maryland 120,734 17,756 80,497
 New Jersey 235,456 46,375 163,161
 New York 535,341 86,619 387,615
 Pennsylvania 275,349 71,229 173,445

Great Lakes 998,218 305,528 576,789
 Illinois 303,238 73,152 197,684
 Indiana 123,604 45,753 64,067
 Michigan 206,666 66,481 114,983
 Ohio 250,363 80,873 140,273
 Wisconsin 112,347 39,270 59,782

Plains 410,814 119,171 238,572
 Iowa 61,104 21,729 31,782
 Kansas 56,338 15,843 32,215
 Minnesota 111,908 31,332 67,502
 Missouri 115,993 32,305 69,911
 Nebraska 37,593 10,586 21,107
 North Dakota 12,740 3,203 7,331
 South Dakota 15,137 4,172 8,723

Southeast 1,320,694 350,781 767,752
 Alabama 81,115 24,032 43,023
 Arkansas 44,610 14,719 24,054
 Florida 285,518 44,775 200,847
 Georgia 160,814 38,567 99,388
 Kentucky 76,726 27,842 37,192
 Louisiana 91,243 29,276 49,709
 Mississippi 44,222 14,513 22,671
 North Carolina 159,977 56,685 80,555
 South Carolina 71,934 23,377 35,927
 Tennessee 111,844 33,290 64,137
 Virginia 161,790 34,312 93,125
 West Virginia 30,901 9,394 17,125

Southwest 598,584 160,843 355,280
 Arizona 79,000 17,400 49,894
 New Mexico 32,858 8,842 17,573
 Oklahoma 62,013 18,033 33,197
 Texas 424,713 116,567 254,616

Rocky Mountain 170,508 41,893 101,282
 Colorado 85,844 17,930 54,489
 Idaho 20,354 6,243 11,036
 Montana 15,084 3,563 8,954
 Utah 35,671 8,429 20,943
 Wyoming 13,555 5,728 5,859

Far West 1,120,726 229,561 740,339
 Alaska 22,372 7,561 9,965
 California 831,576 165,917 560,704
 Hawaii 35,549 3,992 23,884
 Nevada 36,480 5,349 26,751
 Oregon 64,129 16,678 38,649
 Washington 130,620 30,064 80,386

 Millions of dollars

 1992 1999

 Total Private
 gross goods-
 Government state producing
 product industries(1)

 United States 828,265 9,308,983 2,154,398

New England 37,957 542,347 109,797
 Connecticut 9,948 151,779 31,154
 Maine 3,919 34,064 7,492
 Massachusetts 16,960 262,564 48,957
 New Hampshire 2,630 44,229 11,973
 Rhode Island 2,939 32,546 6,049
 Vermont 1,561 17,164 4,173

Mideast 160,553 1,734,325 288,141
 Delaware 2,201 34,669 6,694
 District of Columbia 18,170 55,832 1,806
 Maryland 22,481 174,710 25,251
 New Jersey 25,919 331,544 53,969
 New York 61,106 754,590 103,946
 Pennsylvania 30,675 382,980 96,474

Great Lakes 113,901 1,464,641 433,423
 Illinois 32,402 445,666 97,348
 Indiana 13,784 182,202 68,111
 Michigan 25,202 308,310 99,344
 Ohio 29,217 361,981 113,546
 Wisconsin 13,296 166,481 55,074

Plains 53,071 601,905 156,173
 Iowa 7,593 85,243 26,035
 Kansas 8,280 80,843 20,636
 Minnesota 13,074 172,982 43,712
 Missouri 13,776 170,470 43,690
 Nebraska 5,900 53,744 12,772
 North Dakota 2,206 16,991 3,769
 South Dakota 2,242 21,631 5,559

Southeast 202,161 2,023,742 493,805
 Alabama 14,061 115,071 31,090
 Arkansas 5,837 64,773 20,470
 Florida 39,896 442,895 62,838
 Georgia 22,859 275,719 65,466
 Kentucky 11,693 113,539 40,774
 Louisiana 12,258 128,959 42,233
 Mississippi 7,038 64,286 18,565
 North Carolina 22,737 258,592 79,469
 South Carolina 12,630 106,917 30,522
 Tennessee 14,417 170,085 44,856
 Virginia 34,353 242,221 45,942
 West Virginia 4,383 40,685 11,581

Southwest 82,461 968,362 249,435
 Arizona 11,705 143,683 32,385
 New Mexico 6,443 51,026 15,879
 Oklahoma 10,783 86,382 24,122
 Texas 53,530 687,272 177,049

Rocky Mountain 27,334 288,479 65,968
 Colorado 13,425 153,728 29,517
 Idaho 3,074 34,025 11,568
 Montana 2,568 20,636 4,284
 Utah 6,299 62,641 14,244
 Wyoming 1,967 17,448 6,355

Far West 150,827 1,685,181 357,656
 Alaska 4,846 26,353 8,088
 California 104,955 1,229,098 256,877
 Hawaii 7,674 40,914 3,219
 Nevada 4,380 69,864 12,062
 Oregon 8,802 109,694 36,155
 Washington 20,170 209,258 41,254

 Millions of dollars Percent of total
 gross state
 product

 1999 1992

 Private
 goods-
 Private produc-
 services- ing in-
 producing Government dus-
 industries(2) tries(1)

 United States 6,058,303 1,096,282 24.4

New England 381,762 50,768 22.0
 Connecticut 107,995 12,631 22.8
 Maine 21,801 4,770 23.5
 Massachusetts 189,715 23,892 20.3
 New Hampshire 28,790 3,466 25.5
 Rhode Island 22,598 3,899 22.7
 Vermont 10,862 2,129 27.4

Mideast 1,241,786 204,398 18.6
 Delaware 24,781 3,194 24.0
 District of Columbia 32,994 21,032 3.9
 Maryland 118,968 30,491 14.7
 New Jersey 244,005 33,570 19.7
 New York 573,601 77,002 16.2
 Pennsylvania 247,436 39,070 25.9

Great Lakes 880,568 150,649 30.7
 Illinois 304,138 44,180 24.1
 Indiana 95,818 18,273 37.0
 Michigan 177,066 31,900 32.2
 Ohio 209,768 38,648 32.3
 Wisconsin 93,759 17,648 35.0

Plains 374,777 70,956 29.0
 Iowa 48,950 10,258 35.6
 Kansas 49,331 10,876 28.1
 Minnesota 111,672 17,599 28.0
 Missouri 107,331 19,449 27.9
 Nebraska 33,388 7,585 28.2
 North Dakota 10,767 2,455 25.1
 South Dakota 13,339 2,733 27.6

Southeast 1,258,020 271,917 26.6
 Alabama 65,832 18,149 29.6
 Arkansas 36,311 7,993 33.0
 Florida 326,018 54,039 15.7
 Georgia 177,445 32,808 24.0
 Kentucky 57,459 15,306 36.3
 Louisiana 70,860 15,866 32.1
 Mississippi 35,426 10,295 32.8
 North Carolina 146,915 32,207 35.4
 South Carolina 60,214 16,180 32.5
 Tennessee 105,684 19,546 29.8
 Virginia 153,074 43,205 21.2
 West Virginia 22,781 6,323 30.4

Southwest 602,391 116,537 26.9
 Arizona 93,912 17,385 22.0
 New Mexico 26,553 8,594 26.9
 Oklahoma 48,486 13,774 29.1
 Texas 433,440 76,783 27.4

Rocky Mountain 184,759 37,753 24.6
 Colorado 105,909 18,303 20.9
 Idaho 17,894 4,562 30.7
 Montana 12,967 3,385 23.6
 Utah 39,350 9,007 23.6
 Wyoming 8,638 2,455 42.3

Far West 1,134,241 193,285 20.5
 Alaska 13,141 5,124 33.8
 California 840,728 131,493 20.0
 Hawaii 28,767 8,928 11.2
 Nevada 50,620 7,182 14.7
 Oregon 60,547 12,992 26.0
 Washington 140,438 27,566 23.0

 Percent of total gross state product

 1992 1999

 Private Private
 ser- goods-
 vices- produc-
 produc- Govern- ing in-
 ing in- ment dus-
 dus- tries(1)
 tries(2)

 United States 62.2 13.3 23.1

New England 67.3 10.6 20.2
 Connecticut 67.6 9.6 20.5
 Maine 60.5 16.1 22.0
 Massachusetts 69.6 10.1 18.6
 New Hampshire 64.5 10.0 27.1
 Rhode Island 64.3 13.0 18.6
 Vermont 60.2 12.4 24.3

Mideast 68.4 13.0 16.6
 Delaware 66.5 9.5 19.3
 District of Columbia 55.2 40.9 3.2
 Maryland 66.7 18.6 14.5
 New Jersey 69.3 11.0 16.3
 New York 72.4 11.4 13.8
 Pennsylvania 63.0 11.1 25.2

Great Lakes 57.9 11.4 29.6
 Illinois 65.2 10.7 21.8
 Indiana 51.8 11.2 37.4
 Michigan 55.6 12.2 32.2
 Ohio 56.0 11.7 31.4
 Wisconsin 53.2 11.8 33.1

Plains 58.1 12.9 25.9
 Iowa 52.0 12.4 30.5
 Kansas 57.2 14.7 25.5
 Minnesota 60.3 11.7 25.3
 Missouri 60.3 11.9 25.6
 Nebraska 56.1 15.7 23.8
 North Dakota 57.5 17.3 22.2
 South Dakota 57.6 14.8 25.7

Southeast 58.1 15.3 24.4
 Alabama 53.0 17.3 27.0
 Arkansas 53.9 13.1 31.6
 Florida 70.3 14.0 14.2
 Georgia 61.8 14.2 23.7
 Kentucky 48.5 15.2 35.9
 Louisiana 54.5 13.4 32.7
 Mississippi 51.3 15.9 28.9
 North Carolina 50.4 14.2 30.7
 South Carolina 49.9 17.6 28.5
 Tennessee 57.3 12.9 26.4
 Virginia 57.6 21.2 19.0
 West Virginia 55.4 14.2 28.5

Southwest 59.4 13.8 25.8
 Arizona 63.2 14.8 22.5
 New Mexico 53.5 19.6 31.1
 Oklahoma 53.5 17.4 27.9
 Texas 60.0 12.6 25.8

Rocky Mountain 59.4 16.0 22.9
 Colorado 63.5 15.6 19.2
 Idaho 54.2 15.1 34.0
 Montana 59.4 17.0 20.8
 Utah 58.7 17.7 22.7
 Wyoming 43.2 14.5 36.4

Far West 66.1 13.5 21.2
 Alaska 44.5 21.7 30.7
 California 67.4 12.6 20.9
 Hawaii 67.2 21.6 7.9
 Nevada 73.3 12.0 17.3
 Oregon 60.3 13.7 33.0
 Washington 61.5 15.4 19.7

 Percent of total gross state product

 1999

 Private
 ser-
 vices-
 produc- Govern-
 ing in- ment
 dus-
 tries(2)

 United States 65.1 11.8

New England 70.4 9.4
 Connecticut 71.2 8.3
 Maine 64.0 14.0
 Massachusetts 72.3 9.1
 New Hampshire 65.1 7.8
 Rhode Island 69.4 12.0
 Vermont 63.3 12.4

Mideast 71.6 11.8
 Delaware 71.5 9.2
 District of Columbia 59.1 37.7
 Maryland 68.1 17.5
 New Jersey 73.6 10.1
 New York 76.0 10.2
 Pennsylvania 64.6 10.2

Great Lakes 60.1 10.3
 Illinois 68.2 9.9
 Indiana 52.6 10.0
 Michigan 57.4 10.3
 Ohio 58.0 10.7
 Wisconsin 56.3 10.6

Plains 62.3 11.8
 Iowa 57.4 12.0
 Kansas 61.0 13.5
 Minnesota 64.6 10.2
 Missouri 63.0 11.4
 Nebraska 62.1 14.1
 North Dakota 63.4 14.4
 South Dakota 61.7 12.6

Southeast 62.2 13.4
 Alabama 57.2 15.8
 Arkansas 56.1 12.3
 Florida 73.6 12.2
 Georgia 64.4 11.9
 Kentucky 50.6 13.5
 Louisiana 54.9 12.3
 Mississippi 55.1 16.0
 North Carolina 56.8 12.5
 South Carolina 56.3 15.1
 Tennessee 62.1 11.5
 Virginia 63.2 17.8
 West Virginia 56.0 15.5

Southwest 62.2 12.0
 Arizona 65.4 12.1
 New Mexico 52.0 16.8
 Oklahoma 56.1 15.9
 Texas 63.1 11.2

Rocky Mountain 64.0 13.1
 Colorado 68.9 11.9
 Idaho 52.6 13.4
 Montana 62.8 16.4
 Utah 62.8 14.4
 Wyoming 49.5 14.1

Far West 67.3 11.5
 Alaska 49.9 19.4
 California 68.4 10.7
 Hawaii 70.3 21.8
 Nevada 72.5 10.3
 Oregon 55.2 11.8
 Washington 67.1 13.2

(1.) Private goods-producing industries include agriculture, forestry,
and fishing; mining; construction; and manufacturing.

(2.) Private services-producing industries include transportation and
public utilities; wholesale trade; retail trade; finance, insurance,
and real estate; and "services."

By State, the changes in the shares of the private goods-producing industries ranged from an increase of 7.0 percentage points in Oregon to a decline of 5.9 percentage points in Wyoming. In Oregon, the largest increase was in durable-goods manufacturing, mainly electronic and other electric equipment. In Wyoming, the largest decline was in mining, mainly oil and gas extraction.

The change in the shares of the private services-producing industries ranged from an increase of 6.4 percentage points in South Carolina to a decline of 5.1 percentage points in Oregon. In South Carolina, the largest increase in share was in services, mainly business services. In Oregon, the largest decline was in finance, insurance, and real estate, mainly depository institutions.

The changes in the shares of government ranged from an increase of 1.3 percentage points in West Virginia to a decline of 3.7 percentage points in Colorado. In West Virginia, the decline in share was both in Federal Government and State and local government. In Colorado, the decline in share was mainly due to the rapid growth in private industries.

State shares.--In 1999, the current-dollar GSP of the Nation was $9.3 trillion. California's GSP accounted for the largest share (13.2 percent) of the U.S. total (chart 4). The four States with the next largest shares were New York (8.1 percent), Texas (7.4 percent), Illinois (4.8 percent), and Florida (4.8 percent). In 1992, these States also accounted for the largest shares, but Florida's share (4.4 percent) was less than Illinois' share (4.9 percent). These five States also have the largest shares of the U.S. population.

[ILLUSTRATION OMITTED]

The five States with the smallest shares of U.S. GSP were Vermont, North Dakota, Wyoming, Montana, and South Dakota; each State accounted for about 0.2 percent of the U.S. total. In 1992, these States also accounted for the smallest shares, each again having about 0.2 percent of the U.S. total.

Composition of GSP

The changes over time in industry shares of labor and capital reflect differences in the growth rates of the components of current-dollar GSP.(12) In 1992-99, the labor share of U.S. GSP declined 1.7 percentage points, the property-type income (capital) share increased 2.2 percentage points, and the indirect business tax and nontax liability (IBT) share declined 0.5 percentage point (table 5).(13)

Table 5.--Components of Gross State Product In Current Dollars as a
Percentage of Total Gross State Product, 1992-99

[Percent]

 1992 1993 1994 1995

 United States 100.0 100.0 100.0 100.0
 Compensation of employees 58.5 58.4 57.8 57.4
 Indirect business tax and nontax
 liability 8.2 8.3 8.3 8.1
 Property-type income 33.3 33.3 33.9 34.5

New England 100.0 100.0 100.0 100.0
 Compensation of employees 60.5 60.4 59.6 59.2
 Indirect business tax and nontax
 liability 7.8 7.8 7.7 7.6
 Property-type income 31.7 31.8 32.6 33.2

Mideast 100.0 100.0 100.0 100.0
 Compensation of employees 59.2 59.2 58.8 58.1
 Indirect business tax and nontax
 liability 8.6 8.7 8.6 8.4
 Property-type income 32.3 32.1 32.5 33.5

Great Lakes 100.0 100.0 100.0 100.0
 Compensation of employees 61.6 61.9 61.0 61.0
 Indirect business tax and nontax
 liability 7.6 7.7 7.9 7.5
 Property-type income 30.7 30.3 31.2 31.5

Plains 100.0 100.0 100.0 100.0
 Compensation of employees 58.0 59.1 57.9 57.9
 Indirect business tax and nontax
 liability 7.6 7.8 7.9 7.9
 Property-type income 34.5 33.1 34.2 34.2

Southeast 100.0 100.0 100.0 100.0
 Compensation of employees 58.0 57.8 57.2 56.6
 Indirect business tax and nontax
 liability 8.4 8.5 8.6 8.4
 Property-type income 33.6 33.7 34.2 35.1

Southwest 100.0 100.0 100.0 100.0
 Compensation of employees 55.3 54.6 54.1 54.0
 Indirect business tax and nontax
 liability 9.1 9.1 9.0 8.7
 Property-type income 35.6 36.2 37.0 37.2

Rocky Mountain 100.0 100.0 100.0 100.0
 Compensation of employees 58.2 57.7 57.5 56.9
 Indirect business tax and nontax
 liability 8.2 7.8 8.1 7.9
 Property-type income 33.6 34.5 34.5 35.2

Far West 100.0 100.0 100.0 100.0
 Compensation of employees 56.6 56.2 55.9 55.3
 Indirect business tax and nontax
 liability 8.0 8.1 8.0 8.1
 Property-type income 35.3 35.7 36.1 36.6

 1996 1997 1998 1999

 United States 100.0 100.0 100.0 100.0
 Compensation of employees 56.8 56.4 56.8 56.8
 Indirect business tax and nontax
 liability 8.0 7.9 7.8 7.7
 Property-type income 35.1 35.7 35.4 35.5

New England 100.0 100.0 100.0 100.0
 Compensation of employees 58.9 58.2 58.3 58.4
 Indirect business tax and nontax
 liability 7.5 7.3 7.3 7.1
 Property-type income 33.6 34.5 34.4 34.5

Mideast 100.0 100.0 100.0 100.0
 Compensation of employees 57.7 57.3 57.5 57.5
 Indirect business tax and nontax
 liability 8.3 8.0 7.9 7.9
 Property-type income 34.1 34.7 34.6 34.6

Great Lakes 100.0 100.0 1000.0 100.0
 Compensation of employees 60.2 59.6 59.7 59.8
 Indirect business tax and nontax
 liability 7.7 7.6 7.5 7.5
 Property-type income 32.1 32.8 32.9 32.7

Plains 100.0 100.0 100.0 100.0
 Compensation of employees 56.9 56.6 57.5 58.0
 Indirect business tax and nontax
 liability 7.6 7.4 7.3 7.3
 Property-type income 35.5 36.0 35.2 34.7

Southeast 100.0 100.0 100.0 100.0
 Compensation of employees 56.3 56.0 56.4 56.1
 Indirect business tax and nontax
 liability 8.3 8.2 8.3 8.3
 Property-type income 35.3 35.7 35.3 35.6

Southwest 100.0 100.0 100.0 100.0
 Compensation of employees 53.3 52.7 54.0 54.1
 Indirect business tax and nontax
 liability 8.6 8.3 8.2 8.1
 Property-type income 38.1 39.0 37.7 37.8

Rocky Mountain 100.0 100.0 100.0 100.0
 Compensation of employees 56.5 56.4 56.6 56.7
 Indirect business tax and nontax
 liability 7.6 7.4 7.2 7.1
 Property-type income 35.9 36.2 36.2 36.2

Far West 100.0 100.0 100.0 100.0
 Compensation of employees 54.9 54.7 55.1 55.2
 Indirect business tax and nontax
 liability 7.8 7.6 7.4 7.2
 Property-type income 37.4 37.8 37.6 37.6

 1992-99
 Difference

 United States 0
 Compensation of employees -1.7
 Indirect business tax and nontax
 liability -.5
 Property-type income 2.2

New England 0
 Compensation of employees -2.1
 Indirect business tax and nontax
 liability -.7
 Property-type income 2.8

Mideast 0
 Compensation of employees -1.7
 Indirect business tax and nontax
 liability -.7
 Property-type income 2.3

Great Lakes 0
 Compensation of employees -1.8
 Indirect business tax and nontax
 liability -.1
 Property-type income 2.0

Plains 0
 Compensation of employees 0
 Indirect business tax and nontax
 liability -.3
 Property-type income .2

Southeast 0
 Compensation of employees -1.9
 Indirect business tax and nontax
 liability -.1
 Property-type income 2.0

Southwest 0
 Compensation of employees -1.2
 Indirect business tax and nontax
 liability -1.0
 Property-type income 2.2

Rocky Mountain 0
 Compensation of employees -1.5
 Indirect business tax and nontax
 liability -1.1
 Property-type income 2.6

Far West 0
 Compensation of employees -1.4
 Indirect business tax and nontax
 liability -.8
 Property-type income 2.3

For the BEA regions, the component shares generally mirrored the trend in the U.S. shares. The changes in labor's share of total GSP ranged from a decline of 2.1 percentage points in the New England region to no change in the Plains region. The increases in property-type income's share ranged from 2.8 percentage points in the New England region to 0.2 percentage point in the Plains region. The declines in the IBT share ranged from 1.1 percentage points in the Rocky Mountain region to 0.1 percentage point in the Great Lakes and Southeast regions.

Durable-goods manufacturing mainly accounted for the decline in the New England labor share and for the increase in the New England property-type income share.

Revisions to the Estimates

Impact of the revisions

The revisions to GSP for 1992-98, as a percentage of the previously published estimates, were generally small for all years. The largest revisions were in the most recent years.

Current-dollar estimates.--For 1998, the five States with the largest upward percentage revisions were Alaska, New Mexico, Nevada, Ohio, and Oklahoma (table 6). The revisions mainly reflected revisions to the estimates for the following industries: Oil and gas extraction in Alaska, New Mexico, and Oklahoma and electronic and other electric equipment in New Mexico and Oklahoma; retail trade and amusement and recreation services in Nevada; durable goods in Ohio, mainly primary metals, motor vehicles and equipment, and industrial machinery and equipment.

Table 6.--Revisions to Gross State Product in Current Dollars,
Selected Years

 1993

 Millions of dollars

 Percent
 revision(1)

 Revised Revision

 United States 6,513,026 0 0

New England 373,298 106 0
 Connecticut 107,924 -69 -.1
 Maine 25,358 -15 -.1
 Massachusetts 175,729 119 .1
 New Hampshire 27,507 12 0
 Rhode Island 23,627 46 .2
 Vermont 13,154 14 .1

Mideast 1,282,906 485 0
 Delaware 23,827 72 .3
 District of Columbia 46,596 0 0
 Maryland 126,442 -43 0
 New Jersey 246,727 120 0
 New York 551,161 -20 0
 Pennsylvania 288,154 357 .1

Great Lakes 1,052,019 -705 -.1
 Illinois 317,248 -648 -.2
 Indiana 131,485 -246 -.2
 Michigan 222,886 152 .1
 Ohio 260,891 38 0
 Wisconsin 119,508 -2 0

Plains 424,025 -1,055 -.2
 Iowa 62,764 -396 -.6
 Kansas 58,380 -36 -.1
 Minnesota 115,420 -97 -.1
 Missouri 119,680 -92 -.1
 Nebraska 38,665 -100 -.3
 North Dakota 12,855 -248 -1.9
 South Dakota 16,261 -86 -.5

Southeast 1,400,329 442 0
 Alabama 84,497 86 .1
 Arkansas 47,188 11 0
 Florida 305,036 385 .1
 Georgia 172,220 227 .1
 Kentucky 80,882 43 .1
 Louisiana 95,587 -559 -.6
 Mississippi 47,384 28 .1
 North Carolina 168,830 -29 0
 South Carolina 75,955 126 .2
 Tennessee 119,758 73 .1
 Virginia 170,754 31 0
 West Virginia 32,240 23 .1

Southwest 640,277 97 0
 Arizona 85,483 41 0
 New Mexico 37,110 89 .2
 Oklahoma 65,035 286 .4
 Texas 452,649 -319 -.1

Rocky Mountain 185,006 -124 -.1
 Colorado 93,588 35 0
 Idaho 22,758 96 .4
 Montana 16,151 3 0
 Utah 38,395 -12 0
 Wyoming 14,114 -246 -1.7

Far West 1,155,166 753 .1
 Alaska 23,014 172 .8
 California 847,879 885 .1
 Hawaii 36,308 4 0
 Nevada 39,929 85 .2
 Oregon 69,810 -240 -.3
 Washington 138,225 -154 -.1

 1995

 Millions of dollars

 Percent
 Revised Revision revision(1)

 United States 7,309,516 0 0

New England 416,166 93 0
 Connecticut 118,645 -328 -.3
 Maine 27,987 -100 -.4
 Massachusetts 197,469 364 .2
 New Hampshire 32,388 15 0
 Rhode Island 25,703 147 .6
 Vermont 13,974 -7 -.1

Mideast 1,403,270 564 0
 Delaware 27,575 187 .7
 District of Columbia 48,408 9 0
 Maryland 139,495 -237 -.2
 New Jersey 271,435 138 .1
 New York 597,593 -230 0
 Pennsylvania 318,765 699 .2

Great Lakes 1,191,441 156 0
 Illinois 359,451 -392 -.1
 Indiana 148,447 -195 -.1
 Michigan 254,179 239 .1
 Ohio 295,668 461 .2
 Wisconsin 133,694 41 0

Plains 484,013 -1,124 -.2
 Iowa 71,687 -465 -.6
 Kansas 64,069 86 .1
 Minnesota 131,841 -7 0
 Missouri 139,547 -191 -.1
 Nebraska 44,084 -218 -.5
 North Dakota 14,529 -218 -1.5
 South Dakota 18,257 -109 -.6

Southeast 1,599,405 443 0
 Alabama 95,514 173 .2
 Arkansas 53,809 190 .4
 Florida 344,771 390 .1
 Georgia 203,505 755 .4
 Kentucky 91,472 35 0
 Louisiana 112,157 -1,948 -1.7
 Mississippi 54,562 164 .3
 North Carolina 194,634 120 .1
 South Carolina 86,880 396 .5
 Tennessee 136,821 193 .1
 Virginia 188,963 -40 0
 West Virginia 36,315 13 0

Southwest 730,598 -844 -.1
 Arizona 104,586 -52 0
 New Mexico 42,170 154 .4
 Oklahoma 69,960 605 .9
 Texas 513,882 -1,551 -.3

Rocky Mountain 214,923 -1,079 -.5
 Colorado 109,021 -177 -.2
 Idaho 27,155 135 .5
 Montana 17,537 -127 -.7
 Utah 46,290 -134 -.3
 Wyoming 14,920 -777 -4.9

Far West 1,269,700 1,791 .1
 Alaska 24,791 588 2.4
 California 925,931 1,349 .1
 Hawaii 37,243 -16 0
 Nevada 49,377 283 .6
 Oregon 81,092 -209 -.3
 Washington 151,265 -204 -.1

 1997

 Millions of dollars

 Percent
 Revised Revision revision(1)

 United States 8,224,960 -15,352 -0.2

New England 471,336 -376 -.1
 Connecticut 134,968 176 .1
 Maine 30,409 -236 -.8
 Massachusetts 223,571 88 0
 New Hampshire 37,470 -667 -1.7
 Rhode Island 29,409 234 .8
 Vermont 15,510 31 .2

Mideast 1,547,124 -9,876 -.6
 Delaware 31,263 65 .2
 District of Columbia 50,546 -53 -.1
 Maryland 154,646 -362 -.2
 New Jersey 299,986 -3,594 -1.2
 New York 663,377 -6,069 -.9
 Pennsylvania 347,306 137 0

Great Lakes 1,317,428 -3,330 -.3
 Illinois 400,327 -1,955 -.5
 Indiana 162,953 -822 -.5
 Michigan 279,503 -675 -.2
 Ohio 326,451 1,212 .4
 Wisconsin 148,194 -1,089 -.7

Plains 547,790 -419 -.1
 Iowa 81,695 121 .1
 Kansas 72,998 -61 -.1
 Minnesota 152,334 -6 0
 Missouri 155,811 568 .4
 Nebraska 49,275 -496 -1.0
 North Dakota 15,910 -283 -1.7
 South Dakota 19,767 -263 -1.3

Southeast 1,791,586 -3,040 -.2
 Alabama 104,213 -468 -.4
 Arkansas 59,141 25 0
 Florida 389,473 -1,600 -.4
 Georgia 235,733 1,960 .8
 Kentucky 101,535 90 .1
 Louisiana 123,549 -3,628 -2.9
 Mississippi 58,743 -549 -.9
 North Carolina 221,629 729 .3
 South Carolina 95,447 908 1.0
 Tennessee 151,738 1,010 .7
 Virginia 212,105 -1,253 -.6
 West Virginia 38,281 -264 -.7

Southwest 858,147 3,309 .4
 Arizona 122,273 -859 -.7
 New Mexico 47,829 1,345 2.9
 Oklahoma 79,423 1,102 1.4
 Texas 608,622 1,721 .3

Rocky Mountain 249,183 -2,447 -1.0
 Colorado 129,575 -78 -.1
 Idaho 29,388 302 1.0
 Montana 18,907 -153 -.8
 Utah 55,070 -992 -1.8
 Wyoming 16,244 -1,526 -8.6

Far West 1,442,365 826 .1
 Alaska 26,575 1,063 4.2
 California 1,045,254 1,585 .2
 Hawaii 38,537 -270 -.7
 Nevada 59,248 760 1.3
 Oregon 97,510 -1,327 -1.3
 Washington 175,242 -984 -.6

 1998

 Millions of dollars

 Percent
 Revised Revision revision(1)

 United States 8,752,363 7,144 0.1

New England 504,155 2,346 .5
 Connecticut 143,191 1,092 .8
 Maine 32,138 -180 -.6
 Massachusetts 240,898 1,519 .6
 New Hampshire 41,229 -84 -.2
 Rhode Island 30,468 25 .1
 Vermont 16,233 -24 -.1

Mideast 1,642,652 -108 0
 Delaware 33,912 177 .5
 District of Columbia 52,175 -1,925 -3.6
 Maryland 164,287 -511 -.3
 New Jersey 316,467 -2,734 -.9
 New York 710,897 4,011 .6
 Pennsylvania 364,914 875 .2

Great Lakes 1,397,473 4,024 .3
 Illinois 424,756 -923 -.2
 Indiana 176,095 1,662 1.0
 Michigan 291,557 -2,948 -1.0
 Ohio 346,778 5,708 1.7
 Wisconsin 158,286 525 .3

Plains 575,947 -11 0
 Iowa 83,094 -1,534 -1.8
 Kansas 76,796 -195 -.3
 Minnesota 162,478 1,086 .7
 Missouri 163,949 1,177 .7
 Nebraska 51,702 -35 -.1
 North Dakota 17,031 -183 -1.1
 South Dakota 20,898 -326 -1.5

Southeast 1,903,691 -5,451 -.3
 Alabama 108,950 -883 -.8
 Arkansas 61,626 -2 0
 Florida 416,422 -2,429 -.6
 Georgia 255,455 1,686 .7
 Kentucky 107,571 419 .4
 Louisiana 125,311 -3,940 -3.0
 Mississippi 61,417 -799 -1.3
 North Carolina 236,472 720 .3
 South Carolina 101,214 864 .9
 Tennessee 161,835 2,260 1.4
 Virginia 227,997 -2,828 -1.2
 West Virginia 39,423 -515 -1.3

Southwest 910,977 2,190 .2
 Arizona 133,509 -292 -.2
 New Mexico 49,223 1,487 3.1
 Oklahoma 83,022 1,367 1.7
 Texas 645,223 -373 -.1

Rocky Mountain 267,647 -2,095 -.8
 Colorado 141,056 -735 -.5
 Idaho 31,236 300 1.0
 Montana 19,881 20 .1
 Utah 58,997 -627 -1.1
 Wyoming 16,477 -1,053 -6.0

Far West 1,549,820 6,248 .4
 Alaska 25,008 772 3.2
 California 1,125,559 6,614 .6
 Hawaii 39,610 -102 -.3
 Nevada 64,260 1,216 1.9
 Oregon 103,549 -1,222 -1.2
 Washington 191,834 -1,030 -.5

For 1998, the five States with the largest downward percentage revisions were West Virginia, Wyoming, Louisiana, Iowa, and South Dakota. The revisions mainly reflected revisions to the estimates for the following industries: Coal mining, manufacturing (mainly chemicals and allied products), and electric, gas, and sanitary services in West Virginia; mining (except metal mining), and communications in Wyoming; oil and gas extraction and public utilities (mainly electric, gas, and sanitary services and communications) in Louisiana; industrial machinery and equipment, nondepository institutions, and agriculture, forestry, and fisheries in Iowa and South Dakota.

Real growth rates.--For 1997-98, the States with the largest upward revisions to the growth rates of real GSP were Wyoming, New Hampshire, Indiana, Ohio, and New York (table 7). The States with the largest downward revisions were Iowa, Delaware, Rhode Island, Michigan, South Dakota, and Louisiana. For all these States, the revisions mainly reflected revisions to the current-dollar estimates.

Table 7.--Revisions to Average Annual Rates of Change of Real Gross
State Product, Selected Periods

[Percent]

 1996-97 1997-98

 Pre- Pre-
 viously Re- Dif- viously Re-
 pub- vised ference pub- vised
 lished lished

 United States 5.2 4.9 -.03 5.1 5.1

New England 5.6 5.4 -.2 5.2 5.5
 Connecticut 6.3 6.8 .5 4.2 4.6
 Maine 4.1 3.6 -.5 3.6 3.7
 Massachusetts 4.8 4.6 -.2 6.0 6.3
 New Hampshire 8.0 5.9 -2.1 8.4 9.6
 Rhode Island 8.0 7.9 -.1 2.8 1.5
 Vermont 4.2 4.4 .2 4.1 3.7

Mideast 3.9 3.1 -.8 4.1 4.4
 Delaware 4.7 3.9 -.8 6.5 5.1
 District of Columbia 2.0 1.6 -.4 4.6 .9
 Maryland 4.6 4.4 -.2 4.5 4.2
 New Jersey 4.3 2.9 -1.4 3.4 3.6
 New York 3.6 2.7 -.9 4.6 5.7
 Pennsylvania 3.8 3.4 -.4 3.5 3.3

Great Lakes 5.0 4.6 -.4 4.4 4.7
 Illinois 5.5 4.9 -.6 4.8 4.7
 Indiana 4.5 3.8 -.7 5.4 6.6
 Michigan 4.6 4.1 -.5 3.9 2.8
 Ohio 5.2 5.1 -.1 3.8 4.9
 Wisconsin 5.2 4.2 -1.0 4.7 5.5

Plains 5.0 5.0 0 4.1 3.9
 Iowa 5.3 5.9 .6 3.5 1.0
 Kansas 6.4 5.8 -.6 4.4 4.0
 Minnesota 6.4 6.3 -.1 4.9 5.3
 Missouri 4.3 4.7 -.4 3.4 3.5
 Nebraska 3.1 2.4 -.7 2.9 3.5
 North Dakota .6 -.2 -.8 6.3 6.6
 South Dakota 2.3 1.6 -.7 6.0 4.9

Southeast 4.9 4.6 -.3 4.9 4.5
 Alabama 4.4 3.4 -1.0 3.6 2.9
 Arkansas 3.9 3.2 -.7 3.3 2.9
 Florida 5.0 4.3 -.7 5.5 5.1
 Georgia 5.4 5.6 .2 6.8 6.4
 Kentucky 5.0 4.9 -.1 4.0 4.0
 Louisiana 3.7 3.3 -.4 3.4 2.4
 Mississippi 3.9 2.2 -1.7 3.7 3.2
 North Carolina 6.8 6.7 -.1 4.5 4.3
 South Carolina 4.9 4.9 0 4.6 4.2
 Tennessee 4.8 5.1 .3 4.3 4.8
 Virginia 4.7 4.0 -.7 5.8 5.1
 West Virginia 2.0 1.2 -.8 2.1 1.4

Southwest 7.2 7.6 .4 6.9 6.5
 Arizona 7.6 7.0 -.6 8.3 8.7
 New Mexico 5.7 8.0 2.3 5.0 5.5
 Oklahoma 4.4 4.4 0 4.1 4.5
 Texas 7.6 8.1 .5 7.1 6.4

Rocky Mountain 6.8 6.3 -.5 6.6 6.4
 Colorado 8.6 8.7 .1 8.3 7.6
 Idaho 4.0 4.3 .3 6.7 6.4
 Montana 3.4 3.0 -.4 3.5 3.9
 Utah 6.8 4.8 -2.0 5.3 5.4
 Wyoming 2.5 .7 -1.8 1.8 3.4

Far West 5.9 5.6 -.3 6.2 6.3
 Alaska .9 1.1 .2 -2.5 -2.7
 California 5.9 5.7 -.2 6.3 6.5
 Hawaii 1.3 .5 -.8 .1 .5
 Nevada 5.5 5.4 -.1 5.1 6.0
 Oregon 7.4 5.9 -1.5 7.2 6.8
 Washington 7.1 6.5 -.6 7.8 7.6

 1997-98 1993-98

 Pre-
 Dif- viously Re- Dif-
 ference pub- vised ference
 lished

 United States 0 4.3 4.2 -0.1

New England .3 4.2 4.2 0
 Connecticut .4 3.6 3.7 .1
 Maine .1 2.8 2.6 -.2
 Massachusetts .3 4.5 4.6 .1
 New Hampshire 1.2 7.3 7.2 -.1
 Rhode Island -1.3 3.1 3.0 -.1
 Vermont -.4 2.9 2.8 -.1

Mideast .3 3.1 2.9 -.2
 Delaware -1.4 4.3 4.1 -.2
 District of Columbia -3.7 .2 -.6 -.8
 Maryland -.3 3.2 3.0 -.2
 New Jersey .2 3.2 3.0 -.2
 New York 1.1 3.2 3.2 0
 Pennsylvania -.2 2.9 2.8 -.1

Great Lakes .3 4.1 4.1 0
 Illinois -.1 4.4 4.3 -.1
 Indiana 1.2 4.3 4.4 .1
 Michigan -1.1 4.0 3.7 -.3
 Ohio 1.1 3.9 4.1 .2
 Wisconsin .8 4.2 4.1 -.1

Plains -.2 4.5 4.5 0
 Iowa -2.5 4.8 4.4 -.4
 Kansas -.4 3.9 3.8 -.1
 Minnesota .4 5.1 5.2 .1
 Missouri .1 4.4 4.5 .1
 Nebraska .6 4.2 4.1 -.1
 North Dakota .3 4.1 4.1 0
 South Dakota -1.1 3.9 3.4 -.5

Southeast -.4 4.5 4.4 -.1
 Alabama -.7 3.5 3.2 -.3
 Arkansas -.4 3.9 3.7 -.2
 Florida -.4 4.5 4.3 -.2
 Georgia -.4 6.1 6.1 0
 Kentucky 0 4.3 4.3 0
 Louisiana -1.0 4.4 3.7 -.7
 Mississippi -.5 4.0 3.6 -.4
 North Carolina -.2 5.3 5.3 0
 South Carolina -.4 4.0 4.1 .1
 Tennessee .5 4.1 4.2 .1
 Virginia -.7 4.1 3.8 -.3
 West Virginia -.7 2.8 2.5 -.3

Southwest -.4 5.9 5.9 0
 Arizona .4 8.0 7.9 -.1
 New Mexico .5 5.3 5.9 .6
 Oklahoma .4 3.2 3.4 .2
 Texas -.7 5.9 5.8 -.1

Rocky Mountain -.2 6.1 5.8 -.3
 Colorado -.7 6.7 6.5 -.2
 Idaho -.3 5.7 5.7 0
 Montana .4 2.5 2.3 -.2
 Utah .1 7.2 6.8 -.4
 Wyoming 1.6 3.0 2.0 -1.0

Far West .1 4.2 4.2 0
 Alaska -.2 -.6 -.1 .5
 California .2 4.0 4.1 .1
 Hawaii .4 .4 -.5 -.1
 Nevada .9 6.9 7.2 .3
 Oregon -.4 7.6 7.3 -.3
 Washington -.2 4.7 4.6 -.1

Major sources of the revisions

For the States with the largest revisions to current-dollar GSP, the revisions mainly reflected revisions to the national estimates of GDP by industry or the incorporation of data from the 1997 Economic Census and from the Census Bureau's 1998 Annual Survey of Manufactures (ASM).

For agriculture, forestry, and fishing, the revisions mainly reflected the incorporation of revised expense data for farms by State from the U.S. Department of Agriculture.

For mining, the revisions mainly reflected the incorporation of payrolls and value-added-in-production from the census of mineral industries and revised source data on value-of-production by State from the U.S. Department of Interior.

For construction, the revisions mainly reflected the incorporation of data on payrolls and value of construction work from the census of construction industries.

For manufacturing, the revisions mainly reflected the incorporation of data on payrolls and value-added-in-production from the census of manufactures and the 1998 ASM. The ASM data are based on the North American Industry Classification System (NAICS) rather than on the Standard Industrial Classification (SIC) system. For this revision, the 1998 ASM data were converted from NAICS to the SIC by BEA on the basis of information provided by the Census Bureau (see the box "Implementation of the North American Industry Classification System").

For electric, gas, and sanitary services, the revisions mainly reflected the incorporation of data on revenues and payrolls from the census of transportation, communications, and utilities; for communications, the revisions mainly reflected revisions to the national estimates of GDP by industry.

For nondepository institutions, the revisions mainly reflected revisions to the national estimates of GDP by industry; for real estate, the revisions mainly reflected the incorporation of data on property taxes from the census of governments.

For retail trade and services, the revisions mainly reflected the incorporation of data on receipts and payrolls from the census of retail trade and the census of service industries; for amusement and recreation services in Nevada, the revisions also reflected revisions to proprietors' income.

Acknowledgments

The estimates of gross state product were prepared by staff in the Regional Economic Analysis Division under the direction of John R. Kort, Chief, and George K. Downey, Chief of the Gross State Product by Industry Branch. Hugh W. Knox, Associate Director for Regional Economics, provided general guidance.

Contributing staff members were Gerard P. Aman, Richard M. Beemiller, Caitlin Coakley, Sharon Panek, and Clifford H. Woodruff III.

Gross State Product Estimates

The estimate of gross state product (GSP) for each State is derived as the sum of the gross state product originating in all industries in the State. In concept, an industry's GSP, or its value added, is equal to its gross output (sales or receipts and other operating income, commodity taxes, and inventory change) minus its intermediate inputs (consumption of goods and services purchased from other U.S. industries or imported). Thus, GSP is often considered the State counterpart of the Nation's gross domestic product (GDP).

However, GSP for the Nation differs from GDP for three reasons. First, like the national estimates of gross domestic product by industry, GSP is measured as the sum of the distributions by industry of the components of gross domestic income, which differs from GDP by the statistical discrepancy.(1) Second, GSP excludes, and GDP and GDP by industry include, compensation of Federal civilian and military personnel stationed abroad and government consumption of fixed capital for military structures located abroad and for military equipment except domestically located office equipment. Third, GSP and GDP often have different revision schedules. For an accounting of the differences between GSP for the Nation and GDP by industry in 1999, see appendix A.(2)

The GSP estimates are prepared for 63 industries. For each industry, GSP is presented in three components: Compensation of employees, indirect business tax and nontax liability, and property-type income. Compensation of employees is the sum of wage and salary accruals, employer contributions for social insurance, and other labor income. Property-type income is the sum of corporate profits, proprietors' income, rental income of persons, net interest, capital consumption allowances, business transfer payments, and the current surplus of government enterprises less subsidies.

Current-dollar estimates of GSP and its components are "controlled" to national totals of current-dollar GDP by industry and its components for all industries.(3)

The estimates of real GSP are prepared in chained (1996) dollars. Real GSP is an inflation-adjusted measure of each State's gross product that is based on national prices for the goods and services produced within that State. The estimates of real GSP and of quantity indexes with a base year of 1996 are derived by applying national implicit price deflators to the current-dollar GSP estimates for the 63 industries. Then, the chain-type index formula that is used in the national accounts is used to calculate the estimates of total real GSP and of real GSP at a more aggregated industry level.(4) Real GSP may reflect a substantial volume of output that is sold to other States and countries. To the extent that a State's output is produced and sold in national markets at relatively uniform prices (or sold locally at national prices), GSP captures the differences across States that reflect the relative differences in the mix of goods and services the States produce. However, real GSP does not capture geographic differences in the prices of goods and services produced and sold locally.

(1.) In the national estimates of GDP by industry, the statistical discrepancy is not allocated by industry. In the GSP estimates, insufficient information is available for allocating the statistical discrepancy to States. For more information, see the box "The Statistical Discrepancy" in Robert P. Parker and Eugene P. Seskin, "Annual Revision of the National Income and Product Accounts," SURVEY 77 (August 1997): 19.

(2.) See also the box "Gross Product Originating: Definition and Relationship to Gross Domestic Product" in Lure, Moyer, and Yuskavage, "Improved Estimates," 24.

(3.) If the initial sum of the State estimates differs from the national total for an industry, the difference between the national total and the sum-of-State total is allocated to the States according to the State distribution of the initial estimates.

(4.) For additional information, see J. Steven Landefeld and Robert P. Parker, "BEA's Chain Indexes, Time Series, and Measures of Long-Term Economic Growth," SURVEY 77 (May 1997): 58-68; and Howard L. Friedenberg and Richard M. Beemiller, "Comprehensive Revision of Gross State Product by Industry, 1977-94," SURVEY 77 (June 1997): 28-29.

Data Availability

This article presents summary estimates of gross state product (GSP) by major industry group. The GSP estimates for 63 industries for States, BEA regions, and the United States were released in June 2001 and can be accessed interactively on BEA's Web site at <www.bea.doc.gov>; click on "State and local area data," and look under "Gross state product." Users of the GSP estimates can specify which GSP components, States, regions, industries, and years to display or download. The GSP estimates are also available online to subscribers to STAT-USA's Internet services (call 202-482-1986, or go to <www.stat-usa.gov>).

In July 2001, BEA released the CD-ROM Gross Product by Industry for the United States and States (product number RCN-0281, price $35.00), which contains current-dollar estimates of GSP and its three components--compensation of employees, indirect business tax and nontax liability, and property-type income for 1977-99--and real GSP estimates in chain-type quantity indexes for 1977-99 and in chained (1996) dollars for 1986-99. (The CD-ROM also includes the following estimates for the United States: Gross product by industry for 1947-99, detailed gross output for 1977-99, value of manufacturing product shipments for 1977-96, value of manufacturing industry shipments for 1977-99, and detailed indirect business taxes for 1978-99.) The CD-ROM includes a data-retrieval program that allows users to view or print selected records from the database and selected analytical tables and charts; users may also export selected data to a file for importation into computer spreadsheets. To order, call the BEA Order Desk at 1-800-704-0415 (outside the United States, call 202-606-9666).

For further information, e-mail <gspread@bea.doc.gov> or call 202-606-5340.

Implementation of the North American Industry Classification System

In 1997, the Federal Government statistical agencies adopted the North American Industry Classification System (NAICS)--an economic classification system that groups establishments into industries on the basis of the similarity of their production processes. NAICS provides a new framework for collecting, analyzing, and disseminating economic data on an industry basis. However, much of the source data for BEA's estimates remain on a SIC basis, so BEA's plan for implementing NAICS depends on the implementation schedules of its source data agencies (see John R. Kort, "The North American Industry Classification System in BEA's Economic Accounts," SURVEY OF CURRENT BUSINESS 81 (May 2001): 7-13). BEA tentatively plans to incorporate NAICS into its estimates of gross state product in 2004-05.

(1.) For the previously published estimates of GSP, see Richard M. Beemiller and Clifford H. Woodruff III, "Gross State Product by Industry, 1977-98," SURVEY OF CURRENT BUSINESS 80 (October 2000): 69-90.

(2.) See Sherlene K.S. Lum and Brian C. Moyer, "Gross Domestic Product by Industry for 1997-99," SURVEY 80 (December 2000): 24-35. In order to provide a more timely release of GSP, the July 2001 revision of the NIPA's was not incorporated in these estimates.

(3.) In this article, high-tech industries, at the Standard Industrial Classification (SIC) two-digit level, consist of the following: SIC 35, industrial machinery and equipment (which includes computer and related hardware manufacturing), SIC 36, electronic and other electric equipment (which includes semiconductor manufacturing and related products), SIC 48, communications (which includes telephone, satellite, and multimedia services), and SIC 73, business services (which includes software development, data processing services, and computer rental and leasing). Although some low-tech industries are included at the two-digit level (the level at which the GSP estimates are produced), this definition is useful for determining the concentration of high-tech industries in States. This definition also corresponds, at the two-digit level, with the definition of "information technology producing industries" in Economics and Statistics Administration, Digital Economy 2000, U.S. Department of Commerce, 2000.

(4.) Real GDP and real GSP are measured in chained (1996) dollars. For a discussion of the differences between total GSP and GDP, see the box "Gross State Product Estimates."

(5.) For discussions of economic growth during the earlier expansion, see Howard L. Friedenberg and Rudolph E. DePass, "Recent Growth in Nonfarm Personal Income" SURVEY 68 (October 1988): 23-26; and Kenneth P. Johnson, Howard L. Friedenberg, and Vernon Renshaw, "Tracking the BEA Regional Projections, 1983-86," SURVEY 68 (June 1988): 23-27.

(6.) The ratio of real GSP to the number of employees in a State is used to approximate labor productivity. The employment data are based on quarterly tabulations of State unemployment insurance data on wage and salary workers from the Bureau of Labor Statistics (BLS); they include full- and part-time job holders. In addition, the employment data include BEA's estimate of the number of proprietors and partners. An alternative labor productivity measure estimated by BLS defines labor productivity as output (measured net of price change and interindustry transactions) divided by labor input (measured as hours worked in the corresponding sector). Both the BEA and BLS measures are only partial measures of productivity, and they reflect the combined influences of a host of factors.

(7.) The fastest (slowest) growing States are those whose growth rates are one-half of one standard deviation above (below) the mean annual growth rate for the States.

The western States also showed strong growth in personal income in 2000; see Duke Tran, "Personal Income and Per Capita Personal Income by State, 2000" SURVEY 81 (May 2001): 24-49.

(8.) Source: U.S. Department of Agriculture.

(9.) Real farm income for the States was computed by deflating current-dollar farm income, from BEA's State personal income accounts, using the implicit price deflator for personal consumption expenditures from the NIPA's.

(10.) In 1983-90, the average annual growth rates were the following: Primary metals (1.8 percent), fabricated metals (2.1 percent), and motor vehicles and equipment (-2.3 percent).

(11.) Private services-producing industries consist of transportation and public utilities; wholesale trade; retail trade; finance, insurance, and real estate; and "services." Private goods-producing industries consist of agriculture, forestry, and fishing; mining; construction; and manufacturing. Government consists of Federal civilian, Federal military, and State and local government.

(12.) The labor share of production is approximated using compensation of employees. The capital share of production is approximated using property-type income; within property-type income, an unknown portion of proprietors' income represents a labor share of production (see the box "Gross State Product Estimates"). Indirect business tax and nontax liability (primarily sales, property, and excise taxes) is not included in property-type income, because it is the part of the pretax return to capital that accrues to government rather than to business.

(13.) Component shares of the U.S. totals were calculated from current-dollar GSP estimates.

Appendix A.--Relation of GSP to GDP by Industry, 1999

[Billions of dollars]

 GDP by
 GSP industry

Total 9,309.0 (1)9,371.1

 Compensation of employees 5,290.0 5,305.2
 Wage and salary accruals (2)4,470.7 4,480.5
 Supplements to wages and salaries:
 Employer contributions for
 social insurance (3)322.7 323.6
 Other labor income (4)496.6 501.0

 Indirect business tax and nontax
 liability 718.1 718.1

 Property-type income 3,301.1 3,348.0

 Proprietors' income with
 inventory valuation
 adjustment:
 Farm 33.6 33.6
 Nonfarm 585.5 585.5

 Rental income of persons 199.4 199.4

 Corporate profits with inventory
 valuation adjustment 702.5 702.5

 Net interest 624.2 624.2

 Business transfer payments 39.7 39.7

 Less: Subsidies less current
 surplus of government
 enterprises 28.4 28.4

 Private capital consumption
 allowances 991.9 991.9

 Government consumption of fixed
 capital:
 Federal (5)45.9 92.8
 State and local 106.8 106.8

 GSP less GDP
 by industry

Total -62.1

 Compensation of employees -15.2
 Wage and salary accruals -9.8
 Supplements to wages and salaries:
 Employer contributions for
 social insurance -0.9
 Other labor income -4.4

 Indirect business tax and nontax
 liability 0

 Property-type income -46.9

 Proprietors' income with
 inventory valuation
 adjustment:
 Farm 0
 Nonfarm 0

 Rental income of persons 0

 Corporate profits with inventory
 valuation adjustment 0

 Net interest 0

 Business transfer payments 0

 Less: Subsidies less current
 surplus of government
 enterprises 0

 Private capital consumption
 allowances 0

 Government consumption of fixed
 capital:
 Federal -46.9
 State and local 0

(1.) Equals gross domestic income (GDI) from the national income and
product accounts. GDI differs from gross domestic product (GDP)
because it excludes the statistical discrepancy,

(2.) GSP excludes the wages and salaries of Federal civilian and
military personnel stationed abroad.

(3.) GSP excludes employer contributions for social insurance of
Federal civilian and military personnel stationed abroad.

(4.) GSP excludes other labor income of Federal civilian personnel
stationed abroad.

(5.) GSP excludes the consumption of fixed capital for military
equipment, except domestically located office equipment, and for
military structures located abroad.

NOTE.--For definitions of the line items shown in this table, see
"A Guide to the NIPA'S," SURVEY OF CURRENT BUSINESS 78 (March 1998):
27-34.

GDP Gross domestic product

GSP Gross state product