Economy Analysis

New Jersey’s Output and Income Lackluster in Q1

  • Real GDP growth rate of .8% well under nation’s 2.1%. There was a similar gap for the growth of income.

The first quarter of 2026 saw poor results for New Jersey’s state GDP and personal income. The real GDP growth rate was a meager .8%, compared to the national number of 2.1%. There was no special area of weakness; New Jersey industries generally grew more slowly than in the nation as a whole.

A similar story prevailed for personal income. The income of New Jersey residents rose at a 2.3% annual rate, while the national figure was 3.4%. The most critical part of personal income is “net earnings” (the compensation paid to resident workers, plus the earnings of noncorporate business). That rose at only a 1.8% annual rate in New Jersey, vs. the nation’s 3.1%.

Recommended Posts

Report

New Jersey’s Spending Problem: How New Jersey’s Budget Process Undermines Fiscal Accountability and Sustainability

New GSI Report: New Jersey Budget Growth Outpaces Inflation and Revenues as Billions in Legislative Add-Ons Lack Public Oversight Report finds state spending grew 64%…

Analysis

A September Bounce Back for New Jersey’s Labor Market

Unemployment rate down to 4.2%–matching the nation for the first time in nearly 4 years. Gain of 14,900 jobs reverses much of the June-July plunge,…

Analysis

Q2 New Jersey GDP Trails Nation, but Income was Stronger

GDP growth gap of .5 percentage points in line with long-term trend. Personal income performance one of the best in the nation. 2025 household spending…