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%.

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