North Carolina ranks No. 3 in the latest Forbes magazine ranking of best states for business, up from No. 5 a year ago.

Forbes ranks states based on business costs, labor supply, regulatory environment, economic climate, growth prospects and quality of life. North Carolina excelled in business costs and regulatory environment, ranking No. 3 in both categories, and in growth prospects at No. 9. Labor supply was ranked at No. 15 and economic climate at No. 18. And apparently no one from Forbes has ever been to North Carolina because the state was ranked at an abysmal No. 32 in quality of life.

Utah took the top spot in the ranking due largely to its economic growth, which at 3.5 percent annually over the past five years is bested only by North Dakota. Virginia, which had held the No. 1 spot the last four years, fell to No. 2. Colorado and Washington rounded out the top 5.

Read more: Forbes ranks N.C. third best for business | Triangle Business Journal