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Midwest states’ growth tied to manufacturing

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Iowa’s gross state product grew by more than 3 percent in 2010 from the previous year, the fourth-highest growth rate among 12 Midwest states, according to new data from the U.S. Bureau of Economic Analysis.

North Dakota, where a prosperous mining economy is driving growth, increased its gross state product by more than 7 percent, bizjournals.com reported. Iowa’s state product reached $127.67 billion in 2010, a 3.09 percent increase from 2009.

Most of the dozen states across the region are enjoying moderate growth at best, according to an On Numbers analysis of new data from the U.S. Bureau of Economic Analysis. And they’re much more dependent on manufacturing than mining.

North Dakota topped the nation with an upswing of 7.08 percent in its gross state product (GSP) between 2009 and 2010. GSP is the total output of goods and services in a given state, a localized version of the nation’s gross domestic product (GDP).

Other Midwest states with growth rates higher than Iowa were Indiana, with a 4.55 percent gain, and Minnesota, with 3.16 percent growth.  Manufacturing was the strongest sector in Iowa and nine other Midwestern states. The only exceptions were North Dakota, where mining led, and Kansas, where wholesale trade took the lead.

The Midwest’s weakest economy belongs to Missouri, whose gross state product grew by just 1.42 percent last year. It was pulled down by an anemic construction sector, which actually reduced Missouri’s GSP by 0.40 percentage points.