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Total and per capita personal income by state and region.

THIS ARTICLE presents preliminary fourth-quarter and year 1992 estimates of total personal income for States, regions, and the United States and preliminary 1992 estimates of per capita personal income. In addition, the article includes revised annual State estimates for 1987-91 and revised quarterly estimates for 1989:1-1992:III; these revised estimates are part of a revision going back to 1969.

The first section of this article looks at the preliminary estimates of total State personal income, and the second section discusses the preliminary estimates of per capita personal income. The last section contains information about the revised estimates. Tables 1-4, at the end of the article, present the preliminary and revised estimates: Tables 1 and 2 contain the quarterly estimates of total and nonfarm State personal income for 1989-92, and tables 3 and 4 contain the annual estimates of total and per capita State personal income for 1987-92. Table 5 presents percent changes in earnings for selected industries for 1992.

[TABULAR DATA 1-4 OMITTED]

Total Personal Income

Total personal income in the Nation grew substantially faster in the fourth quarter of 1992 than in the third quarter. It increased 2.0 percent after increasing 0.7 percent; it had increased 1.1 percent in the second quarter and 1.6 percent in the first.(1)

In the fourth quarter, personal income growth picked up in 48 States and slowed in 2 States. The 10 States with the sharpest pickups were Hawaii, Louisiana, Florida, North Dakota, Montana, South Dakota, Nebraska, Kansas, Idaho, and Wyoming. In Hawaii, Louisiana, and Florida, personal income rebounded from the third-quarter impacts of hurricanes. In the other States, the pickups were largely in farm income. The two States with slowdowns were Maine and Rhode Island; the slowdowns were spread across most industries.

For 1992 as a whole, personal income in the Nation grew faster than in 1991. It increased 5-1 percent after increasing 3-5 percent. This pickup followed 2 years of deceleration.

Per Capita Personal Income

Like personal income, per capita personal income in the Nation accelerated in 1992 after 2 years of deceleration. It increased 3.9 percent 1992 after increasing 2.4 percent in 1991. By State, per capita income picked up in all except six States in 1992.

The 1992 increase in per capita personal income was greater than the 3.2-percent increase in U.S. prices (as measured by the fixed-weighted price index for personal consumption expenditures); in contrast, the 1991 increase in per capita income was less than the 4.4-percent increase in prices. By State, the increases in per capita income equaled or exceeded 3.2 percent in all except 11 States in 1992.

Fastest growing States

In 1992, increases in per capita personal income in the 11 fastest growing States ranged from 7.7 percent in North Dakota to 5.1 percent in New Hampshire (table A and chart 1). Except for Rhode Island and New Hampshire, each of these States had per capita income below the U.S. average of $19,841 in 1992, and each is located in the Southeast or Plains region. In all these States except Tennessee, the above-average increases in per capita income resulted from the combination of above-average growth in personal income and below-average growth in population.

[TABULAR DATA A OMITTED]

In North Dakota, Nebraska, Iowa, and Kansas, rapid growth in farm income helped boost personal income growth. North Dakota and Kansas had large increases in wheat production, and Nebraska and Iowa had large increases in corn production. In addition, all four of these States had above-average increases in earnings in nondurables manufacturing, in construction, and in wholesale trade (table B).(2)

[TABULAR DATA B OMITTED]

In Kentucky, Mississippi, Arkansas, West Virginia, and Tennessee, personal income growth was boosted by above-average increases in earnings in durables manufacturing, in construction, in retail trade, and in services. In addition, in all these States except West Virginia, increases in earnings were above average in nondurables manufacturing and in wholesale trade.

In Rhode Island and New Hampshire, increases in earnings were above average in trade and in services. Additionally, in Rhode Island, increases in earnings were above average in nondurables manufacturing and in government; in New Hampshire, they were above average in durables manufacturing and in construction.

Slowest growing States

In 1992, increases in per capita personal income in the 11 slowest growing States ranged from 0.7 percent in Hawaii to 3.0 percent in Maryland (table A and chart 1). Except for South Dakota, Wyoming, and Montana, each of these States had per capita income near or above the U.S. average. In all these States except Nevada and Alaska, the below-average increases in per capita income resulted from the combination of below-average growth in personal income and near- or above-average growth in population. In Nevada and Alaska, the below-average increases in per capita income were more than accounted for by above-average growth in population; these two States led the Nation in population growth in 1992.

In Maryland, Virginia, Delaware, California, Florida, and Hawaii, slow growth in nonfarm income dampened personal income growth. Most of these States had declines or below-average increases in earnings in manufacturing in construction, in trade, and in government. In Florida and Hawaii, damage from hurricanes in the third quarter of 1992 reduced proprietors' income and rental income of persons.

In South Dakota and Montana, large declines in farm income dampened personal income growth. In Wyoming, farm income and earnings in mining changed little, and earnings in nondurables manufacturing declined.

Revisions

Both the annual and quarterly estimates of State personal income have been revised back to 1969 to incorporate the results of a comprehensive revision of the local area estimates, which will be published in next month's Survey of Current Business. In addition, the quarterly estimates for 1969-85 have been revised as part of the ongoing comprehensive revision of State personal income that was first published in the August 1992 Survey.(3) The comprehensive revision of State personal income will be completed later this year with the release of annual estimates for 1929-68.

As shown in table C, the revision raised the estimates of total U.S. wages and salaries for the first three quarters of 1992; the largest revision, $15.4 billion (annual rate), was for the third quarter of 1992. (As a result of these revisions, which largely reflect the incorporation of Bureau of Labor Statistics tabulations of wages and salaries for employees covered by unemployment insurance, these national totals differ from those presently published in the national income and product accounts tables; see the box on page 5.) The revisions were concentrated in manufacturing, wholesale trade, and the finance, insurance, and real estate group. In addition, farm proprietors' income was revised up for the first three quarters of 1992, with the largest revision, $1.0 billion, in the second quarter.

[TABULAR DATA C OMITTED]

On the revised basis, wages and salaries for the Nation grew faster than indicated by the quarterly State estimates published in the january 1993 Survey. From the third quarter of 1991 to the third quarter of 1992, wages and salaries grew 4.1 percent, 0.6 percentage point more than previously published. Similarly, the growth rate for total personal income was revised up 0.4 percentage point to 4.9 percent.

Data Availability

The revised annual estimates for 1969-86 and revised quarterly estimates for 1969-88 are available from the Regional Economic Information System, Regional Economic Measurement Division, BE-55, Bureau of Economic Analysis, U.S. Department of Commerce, Washington, DC 20230. Until June 18, 1993, the phone number is (202) 254-6630; after June 18, call (202) 606-5360. (1.) These percent changes are not at annual rates. (2.) Earnings is the sume of wage and salary disbursements, other labor income, and proprietor's income. (3.) Comprehensive revisions of the State and local area estimates of personal income are made approximately every 5 years to incorporate the changes that result from comprehensive revisions of the national income and product accounts, new source data for States and local areas, and new estimating methods.
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Author:Friedenberg, Howard L.; Tran, Duke D.
Publication:Survey of Current Business
Date:Apr 1, 1993
Words:1343
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