RELEASE: CRI - Center for Economic Policy and Analysis
RE: Output Flat
The U.S. Bureau of Economic Analysis has released its Gross State Product (GSP) figures by state for the fourth quarter of 2018 and Delaware continues a lackluster performance.
In inflation adjusted dollars, GSP measures the total output of each state. Over the past three years, 2015Q4 to 2018Q4, total Delaware GSP has retreated -0.4%. Over the same time period gross output across the nation rose 7.5%. GSP in neighboring New Jersey paralleled the nation with a 7.5% increase in output and Pennsylvania came in at 4.9%.
The major Delaware industries that experienced a drop in output over the three year period included finance and insurance (-3.1%), professional, scientific and technical (-11.2%), and nondurable manufacturing (-7.0%). The drop in finance and insurance output tracked with a drop across the nation (-3.6%). Nationally, professional, scientific and technical output rose substantially (12.7%) and nondurable manufacturing rose as well (5.8%).
The major Delaware industries that experienced a gain included health care (6.0%), construction (4.6%) and accommodation and food services (4.3%). Except for accommodation and food services, the output gains by industry in Delaware trailed the gains in those industries nationally.
Delaware’s economy is currently in a holding pattern caused by a culmination of tax increases, mediocre public schools, and high electric prices driven by carbon taxes and the gift of half a billion dollars to Bloom Energy. At this time, there appears to be little political will to address these issues.
John E. Stapleford, Director
Center for Economic Policy and Analysis