Which city is growing the fastest?

The answer may surprise you. Increases in the services, trade and durable goods sectors are helping to strengthen local economies.

By Bruce Kennedy Feb 26, 2013 8:06AM

Credit: Lester Lefkowitz/Getty Images
Caption: Cranes in Houston, TexasThe majority of American cities saw economic growth in 2011, due largely to increases in business services and manufacturing and stronger trade activity.


The U.S. Bureau of Economic Analysis says real gross domestic product -- that is, GDP adjusted for inflation -- increased in two-thirds of the nation's 366 metropolitan areas in 2011.


Houston's economy grew the fastest out of the nation's largest cities that year, according to The Houston Chronicle.


Here's the bureau's list of the top 10 fastest-growing economies in 2011, along with their economic growth from 2010.


These 10 metro areas also accounted for more than 38% of the overall U.S. metropolitan GDP:

  1. Houston-Sugar Land-Baytown, Texas, up 3.7% from 2010.

  2. Dallas-Fort Worth-Arlington, Texas, up 3.1%

  3. San Francisco-Oakland-Fremont, Calif., up 2.6%

  4. Boston-Cambridge-Quincy, Mass., up 2.4%

  5. Atlanta-Sandy Springs-Marietta, Ga., up 2.2%

  6. Los Angeles-Long Beach-Santa Ana, Calif., up 1.7%

  7. Chicago-Joliet-Naperville, Ill.- Ind.-Wis., up 1.4%

  8. Washington-Arlington-Alexandria, D.C.-Va.-Md.-W.Va., up 1.1%

  9. Philadelphia-Camden-Wilmington, Pa.-N.J.-Del., up 1%

  10. New York-Northern N.J.- Long Island, N.Y.-N.J.-Pa., up 0.8%

As for the different business sectors, cities in New England and the West were most positively affected by growing professional and business services.


Durable-goods manufacturing was important nationally. But the report says it was especially beneficial in the Great Lakes states, where durable-goods accounted for substantial growth in smaller cities like Kokomo, Ind., and Columbus, Ind.


And the effects of wholesale and retail trade gave a boost to the U.S. Southwest -- helping out cities like Odessa, Texas -- where trade added 2.75% to overall real economic growth there.


But there were exceptions all over the map. After two years of economic decline, the Sioux Falls, S.D., metro area had a .09% GDP growth in 2011, thanks in part to a slight rise in local sales, construction, trade and financial services data.


Those modest increases are “all signs that things are happening,” retired University of South Dakota economics professor Ralph Brown told The Argus Leader. “I think (the numbers) look better today than they did say a year, year-and-a-half ago in 2011.”


But Brown says consumers are remaining cautious in his region due to slower than expected economic growth. “Typically, when you have a deep recession, the economy rebounds pretty quickly,” he notes. “The consumer is still trying to deleverage, trying to get its balance sheet back in shape.”


More on moneyNOW

6Comments
Feb 26, 2013 12:22PM
avatar
What percentage of that growth is actually "legal"?
Feb 26, 2013 3:16PM
avatar
Philadelphia up 1%? In what, aside from Tastykake(?), Kraft and the shipyard?  I hope that doesn't count the casinos, as most of the jobs are in low wage services. Not real growth.
Feb 26, 2013 2:44PM
avatar
Obamaville is growing most quickly of all but nobody wants to admit it.
Mar 7, 2013 12:00AM
avatar
How to get cheap car insurance quotes in Sugar Land, Texas?

Our independent auto insurance agents give you excellent service and competitive prices because they can compare car insurance rate from many different insurance companies in Sugar Land, Texas.


http://www.cheapestcarinsurancetexas.com

Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2013 Microsoft. All rights reserved.

Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges.

Fundamental company data and historical chart data provided by Thomson Reuters (click for restrictions). Real-time quotes provided by BATS Exchange. Real-time index quotes and delayed quotes supplied by Interactive Data Real-Time Services. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by SIX Financial Information.

Japanese stock price data provided by Nomura Research Institute Ltd.; quotes delayed 20 minutes. Canadian fund data provided by CANNEX Financial Exchanges Ltd.

Trending NOW

What’s this?

About moneyNOW

moneyNOW brings users smart, original and entertaining takes on the latest business and investing topics that are buzzing on the web.

MARKET UPDATE

[BRIEFING.COM] The S&P 500 ended this week with a bang, roaring to a new all-time high on the back of stronger-than-expected economic data, influential leadership, and an ongoing appreciation for the Fed's monetary policy support.

The bullish bias was evident in premarket action as the S&P futures pointed to a higher start without the benefit of any definitive news catalyst.  Stocks indeed benefited from a blast of buying interest at the opening bell on this ... More

TOP STOCKS

Scary story: the 2013 market looks like 1987

All hail the bull market, which ended the week with a big rally. But it also is starting to look a little like 1987, which suffered an epic blow-out.

MSN MONEY'S