For more details on our national forecast see our Quarterly Economic Forecast. Connecticut enters the fall with a resilient industrial base that helped real GDP growth hit 3.1% year-on-year in the first quarter - the strongest in the region. More recent indicators suggest that momentum has been sustained, with retail activity strengthening through June and defense-related production benefiting from a growing order book. We expect real GDP growth to reach 1.9% in 2026, before slowing to 1.3% in 2027. Non-farm payrolls increased 0.3% over the three months through August, extending the gradual improvement evident over the past year.
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