North Carolina leads CNBC ranking of strongest state economies in America

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North Carolina leads strongest state economies

Highlights

North Carolina ranks first in CNBC’s 2026 state economy list, leading in economic and job growth despite a prolonged budget impasse.
Texas and California follow, with Texas maintaining economic momentum despite slow housing, and California advancing with AI growth but highest May unemployment at 5.3%.
Delaware's low federal funding rate of 22.5% and Wisconsin's surge in new business formations provide fiscal advantages among lower-ranked top 10 states.

CNBC ranking highlights state economic strengths

As reported by CNBC, North Carolina tops its 2026 list of the best state economies in America, with Texas and California following behind. The ranking is part of CNBC’s annual America’s Top States for Business study, which evaluates states on measures including economic growth, job growth and the number of major companies headquartered there.

CNBC says North Carolina delivers the strongest overall performance even after lawmakers fail to pass a budget for more than a year. The state remains among the national leaders in economic and job growth, while foreign direct investment and new business formation stay robust. Its fiscal position takes some strain from the budget impasse, but not enough to alarm credit rating agencies.

Texas remains an economic heavyweight, supported by strong growth and employment trends despite a stagnant housing market. California ranks third, helped by stock market gains and expansion in AI, though it also posts the nation’s highest unemployment rate in May at 5.3%. New York places fourth after recording the third-highest economic growth last year, mainly due to support from financial markets.

Washington rounds out the top five as it continues to attract foreign investment and entrepreneurs despite fiscal pressures. South Carolina, Delaware, Minnesota, Ohio and Wisconsin complete the top 10, each benefiting from a mix of GDP growth, business formation, fiscal insulation or corporate presence.

Business climate and regional implications

Economic performance remains one of the most prominent selling points in state development strategies as officials compete for corporate investment. CNBC’s review of state economic development messaging finds economic factors are the second-most frequently cited advantage, behind infrastructure.

The list also reflects how states are positioning themselves against lingering risks including inflation, geopolitical tension and concerns among investors about stretched market valuations. CNBC notes that while the probability of a U.S. recession has fallen sharply over the past year, businesses still favor states they believe can better withstand a downturn.

Among the lower-ranked top 10 states, Delaware stands out for funding only 22.5% of its budget with federal dollars, giving it some protection from shifts in Washington. Wisconsin benefits from a post-pandemic rise in new business formations, while Ohio gains from a large base of domestic corporate headquarters. Minnesota shows improving economic conditions with strong credit quality and solid small-business survival rates.

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