Arkansas income up 4.82% in second quarter

Personal income in Arkansas during the second quarter of 2011 was $99.649 billion, up 4.82% compared to the second quarter of 2010 and up 1.32% compared to the first quarter of 2011.

Also, the first quarter number was revised down from $99.012 billion to $98.349 billion.

The report released Thursday (Sept. 22) by the U.S. Bureau of Economic Analysis showed that overall U.S. personal income growth grew 1.1% in the quarter to reach $12.975 trillion. The first quarter 2011 personal income figure was also revised downward, moving from the initial estimate of $12.915 trillion to $12.828 trillion. The BEA defines personal income as the sum of net earnings by place of residence, property income, and personal current transfer receipts (Social Security and other government payments to individuals).

ARKANSAS, OKLAHOMA INCOME
Oklahoma’s personal income during the second quarter totaled $141.349 million, up 7.02% compared to the 2010 quarter, and up 1.74% compared to the first quarter of 2011. Oklahoma’s first quarter personal income was revised from the initial estimate of $142.909 million to $138.929 million.

Arkansas ranked 15th among the states in terms of personal income growth between the first and second quarters of 2011, and Oklahoma ranked 4th.

Arkansas’ increase in personal income was driven by a 1.2% increase ($712 million in real dollars) in net earnings, a 1.9% increase in dividend, interest and rental income ($323 million) and a 1.1% increase in transfer receipts ($265 million).

By industry, Arkansas’ second quarter personal income receipts compared to the first quarter are as follows.
Farm:  down $3 million

Forestry, fishing: up $2 million

Mining: up $43 million

Utilities: up $12 million

Construction: up $15 million

Durable goods manufacturing: data not provided

Nondurable goods manufacturing: data not provided

Wholesale trade: up $56 million
Retail trade: up $80 million

Transportation/warehousing: up $80 million

Information: up $16 million

Finance/insurance: up $36 million

Real estate: up $2 million
Educational services: down $4 million

Health care: up $128 million

Arts, entertainment, recreation: up $4 million
Accommodation/food services: up $19 million

Government/federal: up $13 million

Government/military: down $5 million

Government/state and local: down $11 million

In Oklahoma, the biggest sector gains were in mining (up $348 million), durable goods manufacturing (up $365 million), construction (up $194 million), and administrative/waste services (up $144 million).

NATIONAL DATA
The BEA report showed that growth rates ranged from 2.2% in Nebraska and South Dakota to 0.7% in Washington and Georgia. Inflation, as measured by the national price index for personal consumption expenditures, decreased to 0.8% in the second quarter from 1% in the first quarter of 2011.

Following are other notes from the BEA report.
• The deceleration in the second quarter brought personal income growth back to the rate prevailing in the last two quarters of 2010. Personal income growth had been boosted 0.8 percentage point in the first quarter by a reduction in the personal contribution rate for social security, one of the provisions of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010.

• Earnings in health care and professional services grew in all states in the second quarter.

• What distinguished the fastest growing states from the others were the contributions of their farming, mining, and durable goods manufacturing industries.

• With energy prices approaching the record level of the third quarter of 2008, and the industry exploring for and developing new production fields, earnings in the mining industry (which includes oil and gas extraction) grew 14% in North Dakota and 7.3% in Wyoming. Mining made smaller, but still notable, contributions to earnings growth in Alaska, West Virginia, Oklahoma, Texas, and Louisiana.

• Earnings in the durable-goods manufacturing industry grew significantly in the second quarter in Oklahoma and Wisconsin, where it grew 6.2% and 3.1%, respectively. It made smaller, but still notable contributions to earnings growth in Iowa, Kansas, and Indiana.

• Exports of U.S. durable goods grew 2.7% in the second quarter as the dollar continued to depreciate against other major currencies.

• The states with the slowest personal income growth in the second quarter — Washington, Georgia, New York, Delaware, and Michigan — all had substantial bonuses paid to workers in the first quarter in major industries: durable goods manufacturing in the cases of Washington and Michigan, finance in the cases of New York and Delaware, and transportation and management of companies in the case of Georgia.