New York, Nevada Lead GDP Contraction in the First Quarter
(Bloomberg) -- The economies of all 50 American states and the District of Columbia contracted in the first quarter of 2020, even before the full effects of the pandemic took hold, according to data released today by the U.S. Bureau of Economic Analysis.
Both New York, which is heavily tied to financial services, and hospitality-dependent Nevada contracted by more than an 8% seasonally adjusted annual rate. New York has the third-largest share of the country’s gross domestic product, behind California and Texas.
Accommodation and food services declined 26.8% nationally and contributed to the downturns in all 50 states and Washington, D.C. It was the leading cause of the decreases in 29 states.
Nebraska, South Dakota and Texas showed the smallest declines in the first quarter. By sector, utilities remained positive in 49 of the 50 states, falling just in Hawaii.
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