Updated
Updated · Hartford Business Journal · Jun 25
Connecticut Q1 GDP Grows 1.8%, Trailing U.S. 2.1% Pace
Updated
Updated · Hartford Business Journal · Jun 25

Connecticut Q1 GDP Grows 1.8%, Trailing U.S. 2.1% Pace

1 articles · Updated · Hartford Business Journal · Jun 25

Summary

  • Connecticut’s real GDP rose at a 1.8% annualized rate in January-March, faster than its 0.5% pace in late 2025 but below the U.S. economy’s 2.1% gain.
  • 1.05 percentage points from information and 0.97 points from durable goods manufacturing drove much of the state’s growth, with professional and technical services adding another 0.46 points.
  • Retail trade was the biggest drag, subtracting 0.52 percentage points, while educational services, wholesale trade, and finance and insurance also pulled growth lower.
  • 17th among states, Connecticut outpaced New York, Rhode Island, New Jersey and Vermont, but trailed Massachusetts; Washington led nationally at 4.5% and South Dakota contracted 1.6%.
  • 2.2% personal income growth left Connecticut further behind the national 3.4% rate, ranking the state 43rd on that measure in the first quarter.

Insights

Why is Connecticut's unemployment rising faster than any other state's while its economy is still growing?
Are Connecticut's new tax policies and trade deals enough to fix its lagging income growth?