Top States for Business

The 10 best state economies in America in 2026

Published Mon, Jul 13 202610:00 AM EDT

By Scott Cohn@ScottCohnTV

Key Points

• While the odds of a U.S recession have fallen sharply in the last year, companies are still looking to set up shop in states with solid economies. 
• With states loudly touting their own economic strength, Economy is one of the most important categories in CNBC’s annual competitiveness study, America’s Top States for Business. 
• Several states stand out for their economic strength this year, based on factors including job growth, strong housing markets and healthy budgets with relatively lows levels of public debt.

Maybe the U.S. economy has dodged a bullet.  

A little over a year ago around this time, more than half the economists responding to the CNBC Fed Survey predicted a recession within the next year. They were wrong, but that is not to say that the economy does not still face risks. Those risks include inflation, geopolitical tensions, and markets that many cautious investors believe are priced to perfection. 

That helps explain why states continue to market themselves to businesses as the ideal places to weather an economic storm.  

“Iowa is home to a diverse economy, driven by key industries of advanced manufacturing, biosciences and finance and insurance,” the state’s economic development website proclaims. 

“Florida has one of the largest economies in the world, with key industries including aerospace, logistics, manufacturing and defense,” the state notes. “Its diverse economy supports innovation, supply chain growth and global trade.” 

CNBC’s analysis of all 50 states’ economic development marketing pitches as part of this year’s America’s Top States for Business study finds economic factors are the second-most frequently mentioned attribute, behind infrastructure. As a result, under this year’s methodology, Economy is the second-most heavily weighted category for 2026, accounting for 16.6% of a state’s total score. 

To score each state’s economy, we consider a variety of factors including economic growth, job growth and the number of major companies headquartered in the state. We also measure each state’s fiscal health including its budget situation, its long-term obligations and its debt ratings, as well as the health of the residential real estate market. We also consider the impact of tariffs, the potential impact of federal budget cuts, foreign direct investment, and small business survival rates. 

While some states are flashing economic warning signs, these ten states have what it takes to power through whatever the U.S. economy throws their way. 

10. Wisconsin 

Wisconsin has seen a surge of new business formations since the pandemic, according to a study released in May by the Wisconsin Policy Forum. Researchers noted a 20.2% increase in new small businesses in the Badger State between 2020 and 2025. And those new businesses have staying power. According to data compiled for CNBC by research firm Construction Coverage, Wisconsin ranked No. 12 in an index of one-, two- and three-year new business survival rates. Wisconsin’s large agricultural economy, whose significant exposure to China clouded the state’s economic picture last year, benefited from the Supreme Court ruling in February invalidating many of President Trump’s “Liberation Day” tariffs. 

2026 Economy score: 258 out of 415 points (Top States grade: B) 

Real GDP (2025): $359.6 billion (+1.5%) 

Debt Rating and outlook (Moody’s): Aa1, Stable 

Share of state spending from federal funds: 26.8% 

International goods trade (2025): $64 billion (13.6% of GDP) 

Foreign direct investment (2024): $1.5 billion 

Major corporate headquarters: Snap-On, Alliant Energy, Fiserv 

Major corporate headquarters: Labcorp Holdings, Bank of America, Duke Energy

Source: Best state economies in America in 2026