State personal income up 0.94% in 2Q 2010

Arkansas’ personal income grew an estimated 0.94% in the second quarter of 2010, lower than the national average of 1%, according to a U.S. Bureau of Economic Analysis report released Monday (Sept. 20).

The BEA report also noted no change in the national price index for personal consumption, with inflation up just 0.5% in the quarter.

Arkansas’ personal income was $96.074 million in the second quarter of 2010, up from $93.489 million in the second quarter of 2009, and up from the $95.172 million in the first quarter of 2010. The state ranked 32nd in the nation with the 0.94% growth from the first quarter to the second quarter of 2010.

Of the states surrounding Arkansas, only Mississippi had a lower personal income growth rate (0.8%). Louisiana’s growth was 1.1%, Missouri was up 1%, Oklahoma was up 1.2% and Texas was up 1%.

Oklahoma personal income reached $135.237 million in the second quarter, up from $132.02 million in the second quarter of 2009, and up from $133.625 million in the first quarter of 2010. Oklahoma ranked 9th with its 1.2% increase in personal income.

Overall, personal income in the U.S. totaled an estimated $12.462 trillion in the second quarter, up from $12.191 trillion in the second quarter of 2009, and up from the $12.341 trillion in the first quarter of 2010.

Growth rates ranged from 2% in North Dakota to 0.3% in Nevada.

“Personal income in 27 states has now climbed above the current-dollar level reached before the recession. Excluding transfer receipts (such as unemployment compensation and social security retirement benefits), however, personal income in only two states—Alaska and Maryland—has returned to that level,” noted the BEA report.

Earnings in all nonfarm industries grew in the second quarter nationally, with the largest increases in healthcare ($12.1 billion), professional services ($8.7 billion) and the civilian federal government ($7.4 billion), according to the BEA report.

“However, almost all of the earnings growth in the federal government was due to the hire of temporary census workers,” the BEA report explained.

The BEA report also included the following state details.
• In 26 states health care made the largest contribution of any industry to nonfarm earnings growth in the second quarter.

• In eight states — Texas, Oklahoma, Louisiana, Wyoming, Alaska, North Dakota, Montana, and West Virginia — the mining industry (including oil and gas extraction) made the largest contribution to nonfarm earnings growth.

• In six states — Michigan, Ohio, Indiana, Wisconsin, Kentucky, and Iowa — the durable goods industry made the largest contribution.

• Earnings growth in the civilian federal government exceeded all other nonfarm industries in Alabama, Mississippi, Nevada, and South Carolina.

• In Maryland, Virginia, New Jersey, and Oregon, professional services made the largest contribution to nonfarm earnings growth.

According to the BEA, personal income is the income received by all persons from all sources. Personal income is the sum of net earnings by place of residence, property income, and personal current transfer receipts.

Link here for the BEA report.