The Center of the U.S. Economy Is in Rural Missouri

America’s economic center has been moving west over the past two decades, according to county-level GDP data released Thursday for the first time by the Bureau of Economic Analysis.

Over that period, the geographic midpoint of the country’s gross domestic product moved from just outside the small town of Steelville, Missouri (population 1,642) to the outskirts of Hazelgreen, Missouri (population unknown) about 75 miles away. That’s calculated by finding the location in the U.S. where economic output produced in any direction around it is roughly the same.

Some of this slow but unmistakable shift can be attributed to a population that’s growing faster in many western states. But it’s also due to the changing makeup and distribution of the American economy.

The Center of the U.S. Economy Has Moved 75 Miles West Since 2001

Nominal GDP by county 👆

200M

400M

600M

800M

1.6B

3.2B

$6.4B

200M

400M

600M

800M

1.6B

3.2B

$6.4B

200M

400M

600M

800M

1.6B

3.2B

$6.4B

200M

400M

600M

800M

1.6B

3.2B

$6.4B

200M

400M

600M

800M

1.6B

3.2B

$6.4B

Source: U.S. Bureau of Economic Analysis

Looking at which counties have grown the most, in dollar terms, since 2001 reveals the economy’s ongoing transformation from a manufacturing powerhouse to a knowledge-based one—and a tussle among trillion-dollar metropolitan hubs to pull the economy in their direction. So far, the West Coast is winning.

The highest-growth areas in the West are in parts of Southern California (Los Angeles, San Diego and Orange counties), the San Francisco Bay area (Santa Clara) and King County, home to Seattle. Collectively, those five counties added more than $1 trillion in GDP over 17 years. GDP grew the most on the East Coast in Manhattan, Middlesex County outside Boston, Miami-Dade County, Atlanta’s Fulton County and the District of Columbia—adding $662 billion.

How Counties Influence the Center of GDP

Change in each county's nominal GDP since 2001

-771M

0

160M

268

449

762

151

762

$401B

-771M

0

160M

268M

449M

762M

151M

$401B

-771M

0

160M

268M

449M

762M

151M

$401B

-771M

0

160M

268M

449M

762M

151M

$401B

-771M

0

160M

268M

449M

762M

151M

$401B

New York Co., NY

grew by $340B

Los Angeles Co., CA

GDP grew $395B from 2001 to 2008, the largest increase in the country

Zapata Co., TX fell the most, losing $771M

New York Co., NY,

the second largest GDP,

grew by $340B

Los Angeles Co., CA

GDP grew $395B from 2001 to 2008, the largest increase in the country

Zapata Co., TX fell

the most, losing $771M

New York Co., NY,

the second largest GDP,

grew by $340B

Los Angeles Co., CA

GDP grew $395B from 2001 to 2008, the largest increase in the country

Zapata Co., TX fell

the most, losing $771M

New York Co., NY,

the second largest GDP,

grew by $340B

Los Angeles Co., CA GDP

grew $395B from 2001 to 2008,

the largest increase in the country

Zapata Co., TX fell the most, losing $771M

New York Co., NY,

the second largest GDP,

grew by $340B

Los Angeles Co., CA GDP

grew $395B from 2001 to 2008,

the largest increase in the country

Zapata Co., TX fell the most, losing $771M

Source: U.S. Bureau of Economic Analysis

The economic transformation of the U.S. over the past two decades reveals a tug-of-war among key industries. The finance and insurance industry skews to the east, with its geographic midpoint near Evansville, Indiana—more than 200 miles northeast of the overall midpoint. The geographic center for the information sector has been pulled about 230 miles northwest since 2001 by fast-growing tech hubs like Seattle and Silicon Valley, which are home to the four biggest U.S. companies by market capitalization: Apple, Microsoft, Google parent Alphabet and Amazon.

Manufacturing, still a major driver of GDP and exports, appears to be moving in tandem with the overall economy, but the same can’t be said for construction or the arts. The former has doubled back on itself several times, coinciding roughly with the 2009 stimulus package that pumped tens of billions of dollars on infrastructure investment, while the latter has actually moved in the opposite direction of the economy overall.

The geographic midpoint of the mining and oil extraction industry, meanwhile, has careened around the state of Oklahoma, no doubt pulled in varying degrees by the fracking booms in the Dakotas and neighboring Texas.

Industries Are Pulled in Different Directions

How the midpoint of output for six key industries changed from 2001 to 2018

INDIANA

ILLINOIS

MISSOURI

Finance & Insurance

KANSAS

Manufacturing

2018

Information

2018

2018

2018

KENTUCKY

Arts,

Entertainment

& Recreation

2018

Construction

Mining, Quarrying,

Oil & Gas Extraction

TENNESSEE

2018

OKLAHOMA

ARKANSAS

TEXAS

MISSISSIPPI

ALABAMA

INDIANA

ILLINOIS

MISSOURI

Finance & Insurance

Manufacturing

KANSAS

Information

2018

2018

2018

2018

KENTUCKY

Arts,

Entertainment

& Recreation

Arts,

Entertainment

& Recreation

2018

Construction

Construction

Mining, Quarrying,

Oil & Gas Extraction

TENNESSEE

2018

OKLAHOMA

ARKANSAS

ALABAMA

TEXAS

West

Mining, Quarrying,

Oil & Gas Extraction

2018

KANSAS

Information

OKLAHOMA

2018

Arts,

Entertainment

& Recreation

2018

MISSOURI

ARKANSAS

2018

Construction

2018

Manufacturing

ILLINOIS

Finance & Insurance

2018

INDIANA

ALABAMA

KENTUCKY

TEXAS

West

Mining, Quarrying,

Oil & Gas Extraction

2018

KANSAS

Information

OKLAHOMA

2018

Arts,

Entertainment

& Recreation

MISSOURI

2018

ARKANSAS

2018

Construction

2018

Manufacturing

2018

Finance & Insurance

Source: U.S. Bureau of Economic Analysis

Los Angeles County in California experienced the most nominal GDP growth since 2001, and was first for growth in the construction and arts, entertainment and recreation industries. Houston’s Harris County saw the most growth in manufacturing—while manufacturing hubs in parts of North Carolina and Virginia experienced some of the biggest losses.

Where Industries Grew and Shrank

Change in industry output over time

manufacturing

0

14M

40

86

192

498M

$39B

-86M

-8M

Harris Co., TX

Manufacturing GDP

grew the most from

2001 to 2018

 

manufacturing

-86M

-8M

0

14M

40

86

192

498M

$39B

Harris Co., TX

Manufacturing GDP

grew the most from

2001 to 2018

Finance & insurance

-1B

0

2M

6

12

23

55

217M

$107B

New York Co., NY

 

Finance & insurance

-1B

0

2M

6

12

23

55

217M

$107B

New York Co., NY

Information

-2B

-1M

0

2M

6

14

31

106M

$73B

Santa Clara Co.,

CA

 

Information

-2B

-1M

0

2M

6

14

31

106M

$73B

Santa Clara Co.,

CA

Construction

-254M

0

4M

16

29

60

15

172M

$11B

Los Angeles Co.,

CA

 

Construction

-254M

0

4M

16

29

60

15

172M

$11B

Los Angeles Co.,

CA

Mining, quarrying, oil & gas extraction

-1B

-2M

0

43K

1M

4

12

51M

$14B

Midland Co., TX

Mining, QUARRYING,

OIL & GAS EXTRACTION

-1B

-2M

0

43M

1M

4

12

51M

$14B

Midland Co., TX

Arts, entertainment & recreation

-410M

0

391K

1M

2

6

15

65M

$12B

Los Angeles Co.,

CA

Arts, entertainment & recreation

-410M

0

391K

1M

2

6

15

65M

$12B

Los Angeles Co.,

CA

Source: U.S. Bureau of Economic Analysis

Correction: The story has been updated to more precisely locate the 2001 and 2018 GDP midpoints in Missouri.