Iowa’s economy grew 3.1% in 2010

A new report shows Iowa's economy grew by 3.1 percent in 2010, second only to Minnesota at 3.2 percent among contiguous states in the Plains region.

The U.S. Bureau of Labor Analysis on Tuesday said Iowa's real gross domestic product, the sum of all goods and services produced in the state, grew at a faster rate than the 2.6 percent national GDP, which declined by 2.5 percent in 2009.

Durable goods manufacturing, retail trade, and finance and insurance were leading contributors to the upturn in U.S. economic growth. In Iowa, durable goods manufacturing was the leading contributor, adding almost a percentage point to the state's GDP growth rate.

The resurgence in real GDP by state in 2010 was widespread, with all eight Bureau of Economic Analysis regions growing. The Mideast and New England regions grew the fastest, led by finance and insurance in the Mideast and durable goods manufacturing in New England.

Retail trade and finance and insurance also were  leading contributors to real GDP growth. Retail trade contributed to growth in all eight regions and in every state, and was the leading contributor in Oklahoma and Florida.

Finance and insurance was the leading contributor to real GDP growth in five states, contributing more than a percentage point to growth in New York and Connecticut.

Construction continued to be a drag on real GDP growth. Nationally, construction declined for the sixth consecutive year and detracted from growth in most states.

Nevada was particularly hard hit with construction subtracting nearly two percentage points from the state's real GDP growth rate. Nevada was the only state to post a declining GDP in 2010.

North Dakota was the fastest-growing state in 2010 with a 7.1 percent increase in its GDP. Mining was the main industry in North Dakota, contributing 1.99 percent to the state's real GDP growth rate.