Federal report finds bad news for New Jersey economy
TRENTON – New Jersey’s economy shrunk by 1% in the spring quarter of 2022, according to data published Friday by the federal government.
New Jersey was hardly alone in that contraction, as the real gross domestic product decreased in the second quarter in 40 states and Washington, D.C. The 1% decrease was larger than the overall national drop of 0.6% though ranked the state in the middle nationally, 24th among the states.
The contraction was the biggest in the region, though not much different than Maryland and Pennsylvania. But Delaware and New York were among the 10 states with growing economies.
Casting a wider net, the New Jersey economy performed better than in Connecticut and Massachusetts.
The decline snapped a streak of seven consecutive quarters of growth as the state’s economy rebounded from the shutdowns imposed when the COVID-19 pandemic began in the first half of 2020.
However, the Bureau of Economic Analysis data shows the New Jersey economy had begun contracting slightly in the final quarter of 2019, before COVID struck, and first quarter of 2020. It then plunged 10.6% in the second quarter of 2020,
The Bureau of Economic Analysis also reported that personal income in New Jersey increased at an annual rate of 5.6% in the quarter covering April, May and June. That was slightly less than the nation’s 5.8% growth, ranking 27th nationally as every state recorded gains.