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Personal income by state and region, second quarter 1993.

Personal income in the Nation increased 2.3 percent in the second quarter of 1993; it had declined 1.4 percent in the first quarter after increasing 3.7 percent in the fourth quarter of 1992. These changes were affected by the payment in the fourth quarter of 1992 of yearend bonuses that typically would have been paid in the first quarter of 1993. The change in the timing of bonus payments boosted income growth in the second quarter; it had dampened income growth in the first quarter and had boosted income growth in the fourth quarter. If the timing had not changed, personal income in the Nation would have increased 0.7 percent in the second quarter after increasing 1.6 percent in the first and 2.2 percent in the fourth.(1)

In the second quarter, personal income growth picked up in 44 States and slowed in 6 States. The States with the sharpest pickups were New York, Connecticut, New Jersey, and North Dakota. In New York, Connecticut, and New Jersey, the pickups reflected the timing of the bonus payments; in North Dakota, the pickup was largely in farm income. The six States with slowdowns were Alaska, Iowa, Nebraska, South Dakota, Mississippi, and Louisiana. In Alaska, the slowdown was largely in manufacturing and construction payrolls; in the other five States, the slowdowns were in farm income.

The remainder of this article looks at the growth in State personal income from the second quarter of 1992 to the second quarter of 1993. Growth over this period is not affected by the change in the timing of bonus payments. Tables 1 and 2 at the end of the article contain the quarterly estimates of total and nonfarm State personal income beginning with the first quarter of 1990. These estimates incorporate the revisions to the annual State estimates published in the September 1993 Survey of Current Business and the revisions to the quarterly national income and product accounts estimates published in the August 1993 SURVEY.

Personal Income Growth

Since the Second Quarter of 1992

Personal income in the Nation increased 5.5 percent from the second quarter of 1992 to the second quarter of 1993. During this period, the increase in personal income exceeded the 3.1-percent increase in U.S. prices (measured by the fixed-weighted price index for personal consumption expenditures). By State, the increase in personal income exceeded 3.1 percent in all States.

Fastest growing States

Increases in personal income in the 11 fastest growing States ranged from 10.7 percent in Nevada to 7.3 percent in Oregon and South Dakota (table A). These 11 States comprise 7 contiguous States in the Far West, Rocky Mountain, and Southwest regions, 3 States in the Plains region, and Florida (chart 1).

[TABULAR DATA OMITTED]

In the seven contiguous States - Nevada, Utah, Idaho, Colorado, Arizona, New Mexico, and Oregon - personal income growth was boosted by above-average increases in payrolls in durables manufacturing, in construction, in retail trade, and in services.

In the three Plains States - Minnesota, North Dakota, and South Dakota - personal income growth was boosted by strong growth in farm income. In addition, increases in payrolls were above average in durables manufacturing, in retail trade, and in government.

In Florida, increases in payrolls were above average in an major nonfarm industries; the increase in construction payrolls partly reflected rebuilding following damage from Hurricane Andrew in the third quarter of 1992.

In three of the fastest growing States, payrolls declined in a few industries: Nondurables manufacturing in Colorado and South Dakota; construction in South Dakota; and mining in Idaho, Colorado, and South Dakota. In addition, farm income declined in Utah, Florida, and Oregon.

Slowest growing States

Increases in personal income in the 11 slowest growing States ranged from 3.2 percent in California to 4.8 percent in Maryland, Oklahoma, and New York.

In six northeast States - New York, Maryland, Delaware, Massachusetts, Maine, and Rhode Island - and in California, personal income growth was slowed by below-average increases in payrolls in services. In addition, in most of these States, payrolls declined in durables manufacturing, and changes in payrolls were below average in construction, in the transportation-public utilities group, in wholesale and retail trade, and in government.

In Ohio and Missouri, payrolls declined or were unchanged in durables manufacturing, and increases in payrolls were below average in the transportation-public utilities group, in retail trade, and in services.

In Oklahoma and Louisiana, payrolls declined in nondurables manufacturing and in mining, and increases in payrolls were below average in the transportation-public utilities group, in retail trade, and in the finance-insurance-real estate group.

In two of the slowest growing States, increases in payrolls were particularly strong in a few major industries: Increases exceeded 10 percent in construction in Massachusetts and in the finance-insurance-real estate group in New York.

[TABULAR DATA OMITTED]

(1.) These percent changes are not at annual rates.
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Article Details
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Author:Friedenberg, Howard L.; Tran, Duke D.
Publication:Survey of Current Business
Date:Nov 1, 1993
Words:815
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