Connect with us

Markets

Mapped: America’s $2 Trillion Economic Drop, by State and Sector

Published

on

Change in GDP $2T Economic Drop

Mapped: America’s $2 Trillion Economic Drop

It only took a handful of months for the U.S. economy to reel from COVID-19’s effects.

As unemployment rates hit all-time highs and businesses scrambled to stay afloat, new data shows that current dollar GDP plummeted from nearly $21.6 trillion down to $19.5 trillion between Q1’2020 and Q2’2020 (seasonally adjusted at annual rates).

While all states experienced a decline, the effects were not distributed equally across the nation. This visualization takes a look at the latest data from the Bureau of Economic Analysis, uncovering the biggest declines across states, and which industries were most affected by COVID-19 related closures and uncertainty.

Change in GDP by State and Industry

Between March-June 2020, stay-at-home orders resulted in disruptions to consumer activity, health, and the broader economy, causing U.S. GDP to fall by 31.4% from numbers posted in Q1.

The U.S. economy is the sum of its parts, with each state contributing to the total output—making the COVID-19 decline even more evident when state-by-state change in GDP is taken into consideration.

StateReal GDP ChangeBiggest Industry DeclineIndustry Change
(p.p.)
Alabama-29.6Durable Goods Manufacturing-5.02
Alaska-33.8Transport and Warehousing-9.43
Arizona-25.3Accommodation and Food Services-4.2
Arkansas-27.9Health Care and Social Assistance-4.57
California-31.5Accommodation and Food Services-4.43
Colorado-28.1Accommodation and Food Services-3.85
Connecticut-31.1Health Care and Social Assistance-4.61
Delaware-21.9Health Care and Social Assistance-4.19
Florida-30.1Accommodation and Food Services-5.3
Georgia-27.7Accommodation and Food Services-3.43
Hawaii-42.2Accommodation and Food Services-18.85
Idaho-32.4Health Care and Social Assistance-4.49
Illinois-29.7Accommodation and Food Services-4.11
Indiana-33.0Durable Goods Manufacturing-6.74
Iowa-28.2Durable Goods Manufacturing-4.35
Kansas-30.3Durable Goods Manufacturing-4.42
Kentucky-34.5Durable Goods Manufacturing-5.41
Louisiana-31.4Accommodation and Food Services-4.72
Maine-34.4Accommodation and Food Services-7.09
Maryland-27.7Health Care and Social Assistance-4.18
Massachusetts-31.6Health Care and Social Assistance-4.73
Michigan-37.6Durable Goods Manufacturing-7.57
Minnesota-31.3Health Care and Social Assistance-4.55
Mississippi-32.9Health Care and Social Assistance-4.56
Missouri-32.1Health Care and Social Assistance-4.29
Montana-30.8Health Care and Social Assistance-5.67
Nebraska-31.0Transport and Warehousing-6.13
Nevada-42.2Accommodation and Food Services-15.62
New Hampshire-36.9Accommodation and Food Services-6.7
New Jersey-35.6Health Care and Social Assistance-5.33
New Mexico-28.3Mining, Quarrying, and Oil and Gas Extraction-4.4
New York-36.3Accommodation and Food Services-5.97
North Carolina-30.5Accommodation and Food Services-4.67
North Dakota-27.6Transport and Warehousing-4.94
Ohio-33.0Durable Goods Manufacturing-4.92
Oklahoma-31.1Transport and Warehousing-6.22
Oregon-31.9Accommodation and Food Services-5.81
Pennsylvania-34.0Health Care and Social Assistance-5.07
Rhode Island-32.4Health Care and Social Assistance-5.73
South Carolina-32.6Accommodation and Food Services-6.16
South Dakota-28.8Health Care and Social Assistance-5.44
Tennessee-40.4Health Care and Social Assistance-6.25
Texas-29.0Health Care and Social Assistance-3.13
Utah-22.4Transport and Warehousing-3.12
Vermont-38.2Accommodation and Food Services-8.52
Virginia-27.0Health Care and Social Assistance-3.59
Washington-25.5Accommodation and Food Services-4.39
West Virginia-29.6Health Care and Social Assistance-5.48
Wisconsin-32.6Durable Goods Manufacturing-5.17
Wyoming-32.5Transport and Warehousing-7.38
🇺🇸 U.S.-31.4Accommodation and Food Services-4.38

Note: Industry changes are reported in percentage points (p.p.) of total current dollar GDP between Q1 and Q2.

A total of 18 states took the biggest hit within the Accommodation & Food Services sector, which was also the industry that suffered the most nationally, dropping by 4.38%.

Highly dependent on tourism, Hawaii bore the brunt of decline in this industry with a 18.85% drop. According to The Economic Research Organization at the University of Hawaii (UHERO), a second wave of infections and expired financial assistance were behind this contraction.

Next, the Health Care & Social Assistance sector was most impacted in 17 states between the two quarters, falling the most in Tennessee (-6.25%).

The most resilient industry amid the pandemic was Financial Services. In the state of Delaware, home to major banks such as JPMorgan Chase and Capital One, the sector actually grew by 4.47%. However, Delaware’s GDP ultimately still fell due to contractions in other sectors.

Each Industry’s Worst Performing State

Looking at it another way, the worst-performing state by industry also becomes clear when the change in percentage points (p.p.) Q1’–Q2’2020 GDP contributions are measured. Of the 21 industries profiled, Nevada shows up in the lower end of the spectrum four times.

IndustryWorst-performing stateChange (p.p.)
Agriculture, forestry, fishing and huntingNebraska-4.99%
Mining, quarrying, and oil and gas extractionWyoming-5.76%
UtilitiesNebraska-0.33%
ConstructionNew York-2.02%
Durable goods manufacturingMichigan-7.57%
Nondurable goods manufacturingIndiana-2.65%
Wholesale tradeNew Jersey-3.35%
Retail tradeNevada-2.88%
Transportation and warehousingAlaska-9.43%
InformationCalifornia-0.88%
Finance and insuranceSouth Dakota-1.53%
Real estate and rental and leasingFlorida-2.00%
Professional, scientific, and technical servicesDistrict of Columbia-4.46%
Management of companies and enterprisesNevada-0.38%
Administrative/ support /waste management / remediationNevada-2.48%
Educational servicesRhode Island-1.47%
Health care and social assistanceTennessee-6.25%
Arts, entertainment, and recreationNevada-4.44%
Accommodation and food servicesHawaii-18.85%
Other services (ex. govt)District of Columbia-2.40%
Government and government enterprisesAlaska-4.19%

With many U.S. business leaders expecting a second contraction to occur in the economy, will future figures reflect further declines, or will states manage to bounce back?

Click for Comments

Technology

Which Companies Make Up the “Magnificent Seven” Stocks?

FAANG is dead… meet the ‘Magnificent Seven’ stocks that now make up over 25% of the S&P 500.

Published

on

This cropped chart highlights the Magnificent Seven stocks, a group of seven megacap stocks that replace the previous FAANG.

Which Companies Make Up the “Magnificent Seven” Stocks?

In 2013 CNBC analyst Jim Cramer popularized “FANG,” comprised of Facebook (now Meta), Amazon, Netflix, and Google (now Alphabet), as a shorthand for the best performing technology stocks on the market. Apple, added in 2017, made it FAANG.

However, over the last year a new moniker given by Bank of America analyst Michael Hartnett highlights the most valuable and popularly-owned companies on the American stock market: the “Magnificent Seven” stocks.

We visualize the Magnificent Seven’s market capitalization and 5-year stock performance as of November 2023 using data from Google Finance and CompaniesMarketCap.

The Magnificent Seven Stocks by Market Cap and 5-Year Return

The Magnificent Seven stocks are megacap companies focused and capitalizing on tech growth trends including AI, cloud computing, and cutting-edge hardware and software.

Four of the five FAANG stocks retain their place amongst the Magnificent Seven, with newcomers Nvidia, Tesla, and Microsoft joining the group. Following a poor 2022 performance and having more difficulty capitalizing on tech trends, Netflix is the sole FAANG company not included.

Here’s a look at the companies ranked by their market capitalization on November 6, 2023, alongside their 5-year stock performance:

RankCompanyMarket Cap5 Year Performance
1Apple$2.8 trillion+250%
2Microsoft$2.6 trillion+224%
3Alphabet$1.6 trillion+141%
4Amazon$1.4 trillion+63%
5Nvidia$1.1 trillion+783%
6Meta$811 billion+118%
7Tesla$690 billion+829%

The Magnificent Seven make up more than one-quarter of the S&P 500 and more than half of the Nasdaq 100.

Meanwhile, five of the seven are part of the rare trillion dollar club, with Nvidia being the most recent entry.

A common theme among the Magnificent Seven is their ability to collect vast amounts of customer data, create cutting-edge hardware and software, as well as harness the power of AI.

However, if Netflix gets back on track—recently announcing its new ad-supported membership tier has 15 million subscribers—we could soon see a “Magnificent Eight.”

Continue Reading

Subscribe

Popular