State Economic Watch

The latest Federal Reserve Bank of Philadelphia’s Nonmanufacturing Business Outlook Survey indicates stable economic activity in the Philadelphia area services sector in September.  The top line firm specific general business activity index rose from -8.2 in August to a just positive +0.3 in September. However, the regional general business activity index dropped to -22 from -10.6 in the prior month. Still, the employment indexes all showed positive movement m/m, with the full time index increasing to +19 from +2.1, and the average workweek moving into positive territory at +8.5 from -13.4 in August. The capex indexes also moved higher in the month. The six-month general forward business activity indexes increased m/m, but the expectations for firm specific activity were stronger at +20.3 than the regional expectations at +2.0.

According to a press release from the office of West Virginia Governor Pat Morrisey, the state’s tourism hit record levels in 2025. Visitor count reached 78.4 million last year, up 1.8% y/y. State officials estimate that tourism’s contribution to the West Virginia economy hit a record $9.4 billion last year. The state’s total nominal GDP was estimated at $109.3 billion in 2025.

A new survey from the Connecticut Business & Industry Association’s Foundation for Economic Growth & Opportunity, points to a degree of pessimism among the state’s businesses. According to the survey results, only 9% of respondents believe the state’s business climate is improving while 38% feel it is declining. Only 1% expect strong growth in Connecticut’s economy over the next twelve months and just 26% expect moderate growth. The high cost of doing business in the state seems to be the principal driver of the downbeat responses. Nevertheless, only 8% of respondents said that they were actively considering moving out of state. 

Another month, another low information State Employment Report . Today’s release from the US Bureau of Labor Statistics shows little change in state employment markets in August. Only four states posted m/m increases in nonfarm payrolls in the month, the largest on a percentage basis being a 0.6% gain in New Mexico. No single sector dominated in New Mexico, but most of the gain was concentrated in construction, health & ed, and government. The remaining 46 states saw no material change in employment. The y/y numbers told a similar story, with eight states posting payroll increases and 42 staying flat. The largest y/y percentage gainers were Louisiana, New Mexico, and South Carolina, all at 1.6%. Louisiana saw gains from construction, while New Mexico benefited from increases in health & ed and government. South Carolina saw gains across almost all of the employment sectors, especially health & ed and leisure & hospitality. The District of Columbia continues to suffer fr...

Manufacturing activity in the Philadelphia area expanded in September but at a slower pace than in August according to the Federal Reserve Bank of Philadelphia’s Manufacturing Business Outlook Survey . The top line general business activity index fell to 37.8 in September from 47.4 in August. New orders and shipments were essentially unchanged m/m, but the employment indexes declined, with the employee count index falling to 11.8 from 27.9 in the previous month, and the average workweek index dropping to 18 from 26.5. The forward-looking six-month expectations indexes were mixed but strong, with the general business activity index falling to 52.9 from 73.6, while employment expectations indexes moved higher. The capex six-month expectations index fell modestly in September to 37.1 from 48.2. Finally, 68% of respondents estimated that their total production increased in 3Q2026 compared to 2Q2026.

Here’s an article from West Virginia Watch via News From The States that requires a couple of readings in order to follow the logic. According to the article, the director of the West Virginia Office of Energy told state lawmakers on Tuesday, that the development of data centers will actually improve the state’s water quality issues, telling Delegates that “the whole issue on water has been mischaracterized”. The idea here seems to be that data centers will generate revenue that can be used to pay for water infrastructure projects. Not surprisingly, this appears to have been met with a certain level of skepticism.