Missouri Business Diversity Ranks High

A new report from the Missouri Economic Research and Information Center ranks Missouri No.7 nationally in the diversity of its economy, based on a set of metrics from 2015, the most recent year available. 

In a news release announcing the publication of its findings, MERIC said that a diversified economy could better manage the ups and downs of the business cycle, in contrast to states where comparitively few industries dominate employment and commerce. The more balanced an economy, it said, the better a state is positioned to absorb economic shock when large sectors under-perform.

Excluding government, the five biggest industries in Missouri for 2015 were manufacturing, which accounted for 13.2 percent of total state GDP), real estate (11.6 percent), healthcare (8.4 percent), finance and insurance (7.8 percent), and wholesale trade (6.7 percent). 

Reflecting the dynamic movements taking place in business, half a dozen industries experienced dramatic change between 2014 and 2015, in share of GDP as well as value, the report said: Professional, scientific, and technical services increased its share of state GDP from 5.9 percent to 6.4 percent, an increase of nearly 15 percent in value. Among other sectors with significant value increases were real estate, up 14 percent; retail trade, up 10 percent, and manufacturing, up 8 percent.

The full report is available here.