America's Economic Engines: The Biggest Industries in Every State

In most U.S. states, the engine that powers the economy is either real estate or manufacturing. A visualcapitalist.com analysis, conducted in partnership with Terzo, highlights the industry that contributes the most to each U.S. state's GDP, and according to it, real estate is the engine of the economy in more than half of the states. This is largely due to the fact that the Bureau of Economic Analysis treats homeowners as landlords who rent for themselves and includes the value of rent in GDP. If economists did not include this value, an increase in the homeownership rate would lead to a decrease in GDP, according to the cited source. In addition, the real estate industry includes rent paid by tenants, property taxes, construction, renovations and broker commissions.

In second place, manufacturing is the largest industry in 13 U.S. states. Its importance is heavily concentrated in the Midwest and South, due to the long history of the sector in some states, the large amount of land available, and government support.

• Uncommon Economic Leaders

Aside from real estate and manufacturing, some industries are the main drivers of GDP in a much smaller number of states. For example, finance and insurance are the largest industries in New York, Delaware, Nebraska, and South Dakota, according to the source. More than half of all publicly traded U.S. companies are incorporated in Delaware due to its balanced and flexible corporate laws, a business-friendly environment, and a respected legal community. In South Dakota, financial services are attracted by the state's business-friendly tax and trust laws, which can shield families from inheritance taxes indefinitely.

Mining, oil, and gas generate the most economic output in three states. North Dakota is the country's third-largest crude oil producer, while Wyoming and West Virginia are the top two coal producers in the country.

Government is the largest driver of GDP in D.C. and Oklahoma. Finally, professional and technical services (Massachusetts), information (Washington), and transportation and warehousing (Alaska) are the top industries in each state.

Official data shows that the U.S. economy grew 3% year-on-year in the second quarter of 2025, fueled by a rebound in the trade balance and rising consumer spending. Analysts had expected a 2.3% gain.

In the first quarter of 2025, GDP growth was -0.5%, the first decline in several quarters of gains.

Consumer spending rose 1.4% in the second quarter, better than the +0.5% growth in the previous period. While exports fell 1.8% in the second quarter, imports fell 30.3%, reversing the 37.9% increase in the first quarter.

The GDP figures showed significant growth in key areas of the economy, as well as evidence that inflation is falling, notes CNBC.