Slower Growth for Second Quarter Personal Income in States | MuniNet Economic Metrics
Personal Income in States Sees Slower Growth in Second Quarter
The Bureau of Economic Analysis released its state personal income numbers for the second quarter of 2017. Personal income growth declined overall to to 0.7 percent on average in the second quarter from 1.4 percent in the first quarter. Each of the major aggregates of personal income–net earnings, property income, and personal current transfer receipts–grew more slowly than in the first quarter.
Personal income grew 1.3 percent in Nevada, faster than in any other state. Utah had the next fastest growth at 1.1 percent. Iowa, Nebraska, and West Virginia had the slowest growth in personal income, with each state growing less than half the rate of the nation.
The BEA also breaks down state personal income growth by industry. For the nation, earnings grew in 20 of the 24 industries for which BEA prepares quarterly estimates. Earnings growth in three industries–health care and social assistance; professional, scientific, and technical services; and finance and insurance–was the leading contributor to overall growth in personal income. Nationally, personal income growth was led by
The BEA estimates show how much a state’s income has risen or fallen in the first quarter of 2017. The BEA measures state income as the sum of net earnings by place of residence, property income, and personal current transfer receipts. Net earnings are wages, salaries, and current benefits like employer provided healthcare. Property income includes rental income, but also stock dividends and other interest income. Current transfer receipts include any benefits received from Federal, state, or local government, as well as private pensions. The map below shows the growth for each state.
Below is a chart of the state personal income growth in Q2 2017 for each region. The Plains region reflects its states’ poor growth, growing at the slowest rate for the second consecutive quarter, at 0.4%. The Mideast, Southeast, and Rocky Mountain regions all grew at a leading 0.8%. Overall, the regions are quite close in their growth rates, with the exception that the Plains states grew at a noticeably slower pace overall.
It is important to note that this report does not include the wage-growth numbers commonly reported by the media. Those numbers are collected and reported by the Bureau of Labor Statistics, and the focus is specifically on wage earners. The report on income from the Bureau of Economic Analysis takes a much broader look at income overall. Access to the BEA’s full data on state income changes Q1 2017 can be found here.
All data provided by the U.S. Bureau of Economic Analysis
by Jeffrey L Garceau