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Personal income growth slowed in second quarter 1990.

Personal Income Growth Slowed in Second Quarter 1990

PERSONAL income in the Nation increased only 1.3 percent in the second quarter of 1990, down from 2.1 percent in the first. (1) The slowdown was widespread: 38 States had slower growth in the second quarter than in the first (chart 4). Personal income growth slowed sharply in the Plains, Far West, and Southeast regions and slightly in the Southwest and Mideast regions. Income growth was unchanged in the Great Lakes and New England regions and picked up slightly in the Rocky Mountain region.

In the Plains region, personal income increased 0.3 percent in the second quarter after a 1.9-percent increase in the first. Farm income and construction payrolls declined after an increase (table 1). A drop in Federal farm subsidy payments contributed to the farm income decline. In addition, the payroll gain in retail trade was smaller in the second quarter than in the first. By State, personal income growth slowed in the second quarter in Iowa, Nebraska, South Dakota, Kansas, and Missouri and picked up in North Dakota and Minnesota.

In the Far West, personal income increased 1.6 percent in the second quarter after a 3.2-percent increase in the first. Durables manufacturing payrolls declined after being boosted by bonuses in the aircraft industry in the first quarter. Payroll gains in transportation and public utilities and in wholesale and retail trade were smaller in the second quarter than in the first. All of the Far West States had slowdowns in income growth in the second quarter.

In the Southeast, personal income increased 1.2 percent in the second quarter after a 2.7-percent increase in the first. Farm income and construction payrolls declined in the second quarter after increasing in the first. Moreover, payroll gains in both durables and nondurables manufacturing, in transportation and public utilities, and in retail trade were smaller in the second quarter than in the first. All of the Southeast States had slowdowns in income growth in the second quarter.

In the Southwest, personal income increased 1.3 percent in the second quarter after a 1.7-percent increase in the first. Farm income and durables manufacturing payrolls declined in the second quarter after increasing in the first. In addition, payroll gains in construction, in transportation and public utilities, and in wholesale and retail trade were smaller in the second quarter than in the first. All of the Southwest States except New Mexico had slowdowns in income growth in the second quarter.

In the Mideast, personal income increased 1.3 percent in the second quarter after a 1.7-percent increase in the first. A decline in construction payrolls that was larger in the second quarter than in the first contributed to the slowdown. Payrolls in transportation and public utilities also declined after a first-quarter gain. Payroll gains in retail trade and services were smaller in the second quarter than in the first. All of the Mideast States except New Jersey had slowdowns in income growth in the second quarter.

In the Great Lakes region, personal income increased 1.6 percent in the second quarter, the same rate as in the first. Downswings in farming and construction were offset by pickups in manufacturing and the private service-type industries (transportation and public utilities; wholesale trade; retail trade; finance, insurance, and real estate; and services). Within manufacturing, durables payrolls increased in the second quarter after declining in the first; a second-quarter increase in motor vehicle output (but only back up to the relatively low level of late 1989) boosted these payrolls, which had declined in the first quarter as firms cut output to reduce inventories in response to low domestic car sales. Payrolls in the private service-type industries increased more in the second quarter than in the first. By State, personal income growth slowed in the second quarter in Wisconsin, Indiana, and Illinois and picked up in Michigan and Ohio.

In New England, personal income increased 0.9 percent in the second quarter, the same rate as in the first. A downswing in manufacturing in the second quarter was offset by pickups in three of the private service-type industries. Within manufacturing, both durables and nondurables payrolls declined after an increase. Among private service-type industries, wholesale trade payrolls increased in the second quarter after declining in the first, and payrolls in finance, insurance, and real estate and in services increased more in the second quarter than in the first. By State, personal income growth slowed in the second quarter in Vermont, Maine, Rhode Island, and Massachusetts and picked up in Connecticut and New Hampshire.

In the Rocky Mountain region, personal income increased 1.6 percent in the second quarter after a 1.4-percent increase in the first. Farm income and nondurables manufacturing payrolls increased in the second quarter after declining in the first. Payroll gains in all private service-type industries except wholesale trade were larger in the second quarter than in the first. By State, personal income growth picked up in the second quarter in Montana, Colorado, and Utah and slowed in Idaho and Wyoming.

(1) Percent changes shown in this article are not at annual rates.

NOTE.--This article was written by Howard L. Friedenberg and Rudolph E. DePass.
COPYRIGHT 1990 U.S. Government Printing Office
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Title Annotation:Regional Perspectives
Publication:Survey of Current Business
Date:Oct 1, 1990
Words:874
Previous Article:National income and product accounts: selected NIPA tables and NIPA charts.
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