The Wisconsin economy shrunk at a 32.6% annualized rate in the second quarter, according to the initial estimate of the state’s GDP from the U.S. Bureau of Economic Analysis.
Wisconsin’s performance was slightly worse than the country as a whole. The third estimate of U.S GDP for the second quarter, released this week, found a 31.4% decrease.
Overall, Wisconsin had the 16th worst economic performance in the quarter. Hawaii and Nevada had the worst performance with GDP down 42.2% on an annualized basis.
Delaware, down 21.9%, and Utah, down 22.4%, had the best second quarter performance followed by Arizona, Washington and Virginia.
While restaurants, hotels and retail stores were among those hit hardest by shutdown orders this spring, the manufacturing sector made the largest contribution to the decline in the state’s GDP. The sector accounted for nearly 7 percentage points of decline, including a nearly 5.2-point drop from durable goods manufacturing.
Only three states – Kentucky, Michigan and Indiana – saw worse declines from their manufacturing sectors.
Nationally, the manufacturing sector contributed 4.1 points to the GDP decline. Accommodation and food service contributed nearly 4.4 points to the national decline and health care and social assistance was a 4-point drag on the economy.
In Wisconsin, health care was a nearly 4.4-point drag and accommodation and food service contributed a nearly 3.5-point decline.
The only sector to make a positive contribution to GDP in the state during the second quarter was finance and insurance, which added 1.2 percentage points.
