GSI Analysis: New Jersey’s GDP and Personal Income

• Output and income growth trailed nation in Q2 after relatively better performance in Q1.
• New Jersey’s GDP grew at 2.8% compared to New York’s 4.0.
• Level of income revised up.

The numbers on New Jersey’s Gross State Product (GDP) and personal income for the second quarter of 2025 were mediocre. It is estimated that real GDP in the state grew at a 2.8% annual rate in Q2, which is a full point under the national pace of 3.8% and even further under New York’s 4.0%. However, revised figures show that New Jersey’s output edged up at a .4% rate in Q1, which was a point above the nation’s .6% rate of decline. Thus, for the first half of the year, New Jersey’s output growth was on par with the nation’s.

The story is comparable for personal income. Income of New Jersey residents rose at a 4.7% annual rate in Q2, compared to the nation’s 5.5%. In Q1, however, New Jersey’s 7.0% growth rate exceeded the nation’s 6.4%. So again, for the first half of the year New Jersey’s income gains were very comparable to the nation. In the crucial “net earnings” category (employee compensation plus the earnings of noncorporate business) New Jersey’s Q2 growth rate of 4.2% was just a touch less than the 4.4% national figure.

This release includes revisions to the numbers starting in 2020. For GDP, the revisions look very small. Personal income, though, was revised up somewhat. The new value for the first quarter of 2025 is $832 billion (at an annual rate) compared to the prior $823 billlion.