State real GDP growth in 2023:1 ranged from North Dakota’s 12.4 percent annual rate to 0.1 percent in Rhode Island and Alabama. Growth was generally strongest in agricultural regions (though estimating the growth of farm output in the first quarter is always problematic). Northeastern states grew more slowly, in some instances in part due to weakness in agriculture, in others losses in manufacturing.
State personal income growth rates ranged from Maine’s 11.4 percent to Indiana’s -1.0 percent. As always, erratic swings in transfer payments account for much of the variation by state. Net earnings (employee compensation plus proprietors’ income) growth was strong in agricultural states, presumably due to a rise in farm income associated with the increase in agricultural output.