Connecticut’s economy grew faster than every other New England state and the national average in the second quarter of 2026
Personal income in the state also rose faster than the national rate during the same period
Manufacturing drove the most growth, though manufacturers reported rising costs and concerns about tariffs and worker shortages
Connecticut’s economy grew 3% in the second quarter of 2026, among the fastest rates in the country and ahead of both the national average and every other New England state, according to the Hartford Business Journal.
Connecticut’s 3% gross domestic product growth in that time was good for a tie for seventh nationally with Florida and stood above California and Texas, as well as the national average of 2.2% in that month, according to the Hartford Business Journal.
Notably, in that quarter, Connecticut also outpaced every other New England state, with just New York and Delaware sitting above the Nutmeg State in the Northeast Corridor.
As well, that was an increase from 1.8% seen in the first quarter of the state.
During the three-month period, Connecticut also posted strong results in personal income growth compared to national averages. While the nation as a whole stood at 4.7%, Connecticut personal income grew by 5.3%.
Manufacturing was the strongest sector for the quarter. Manufacturing, and durable goods production in particular, contributed 1.1 percentage points of growth. Finance and insurance, information and real estate each contributed at least 0.5 percentage points.
Manufacturing accounted for 11.2% of Connecticut’s GDP in 2025, according to the Connecticut Business and Industry Association. The same CBIA report found that 93% of manufacturers said their costs were growing, and nearly 60% expected tariffs to hurt their businesses in 2027.
About two-thirds of manufacturers turned a profit in 2025 and expected to do so again in 2026, according to the report. Tariffs and a shortage of workers with the skills to fill open positions were among the challenges the industry faced, CBIA found.
