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Idaho and Maine led the nation in personal income growth in the first quarter of 1999, according to estimates released by the Commerce Department's Bureau of Economic Analysis.

For the nation, personal income grew 1.2 percent in the first quarter. Prices paid by U.S. consumers (as measured by the price index for personal consumption expenditures) increased 0.3 percent. Forty-five states and the District of Columbia had growth rates in personal income that were above the 0.3-percent increase in prices. In the remaining five states, personal income was unchanged in Delaware, and it declined in North Dakota, Nebraska, South Dakota, and Iowa.

Fastest growing states

In the first quarter of 1999, the seven states with the fastest growth in personal income were Idaho (1.9 percent), Maine (1.8 percent), South Carolina (1.7 percent), Wyoming (1.7 percent), New York (1.7 percent), Florida (1.7 percent), and California (1.7 percent). Together, New York, Florida, and California accounted for more than one-third of the personal income growth in the nation.

In all seven states, net earnings contributed more to personal income growth than did transfer payments or dividends, interest, and rent (see table 1, contribution to percent change in personal income).

                                                                     Fastest growing states
                -------------------------------- percent change from fourth quarter 1998 to first quarter 1999 ------------------------
                            Divi-                                                       Transpor-                 Finance,
                           dends,   Transfer           Earnings           Con-    Manu-  tation &  Whole-        insurance,
                Personal  interest,   pay-     Net     by place          struc-  factu-  public    sale   Retail  & real   Ser- Govern-
                 income    & rent    ments  earnings  of work/1/  Farms   tion    ring  utilities  trade   trade  estate  vices   ment
                ------- by place of residence ------  ---------------------------- earnings by place of work --------------------------

United States...   1.2      0.4      1.5       1.4       1.5     -21.6     2.7     0.6     0.6      0.9     1.4     3.1    2.5     1.6

Idaho...........   1.9       .4      1.4       2.4       2.6      -7.1     3.3     1.4     2.1      1.5     2.2     4.9    5.1     2.5
Maine...........   1.8       .4      1.6       2.2       2.3      -4.8     6.9     1.2     1.6       .6      .6     5.1    2.4     2.2
South Carolina..   1.7       .4      1.6       2.1       2.1     -21.2     2.3     1.1     2.0      1.8     1.2     4.4    3.5     2.6
Wyoming.........   1.7       .5      1.5       2.2       2.2     200.0     6.6    -1.1      .6      1.5     1.8     4.0    3.0     1.1
New York........   1.7       .3      1.5       2.1       2.2      -5.7     3.7     2.0      .4       .6     1.2     3.3    2.6     1.4
Florida.........   1.7       .4      1.7       2.2       2.3     -12.2     2.1     3.4      .9       .5     1.7     3.8    3.2     1.4
California......   1.7       .3      1.4       2.0       2.1     -12.1     2.8     1.2     1.4      1.4     1.1     3.4    3.2     2.0
---------------------------------------------------------------------------------------------------------------------------------------
  1.  Includes mining and agricultural services, forestry, and fishing, which are not shown separately.

By industry, in all seven fastest growing states, earnings in services was the major contributor to growth in earnings by place of work; in all seven states except Wyoming, earnings in finance, insurance, and real estate also contributed substantially. In addition:

• In Idaho and Maine, earnings in construction and government contributed substantially to earnings growth.
• In South Carolina and California, earnings in government contributed substantially to earnings growth.
• In Wyoming, earnings in farms and construction contributed substantially to earnings growth.
• In Florida, earnings in manufacturing contributed substantially to earnings growth.

Slowest growing states

In the first quarter of 1999, the six states with the slowest growth in personal income were North Dakota (-0.7 percent), Nebraska (-0.4 percent), South Dakota (-0.2 percent), Iowa (-0.2 percent), Delaware (unchanged), and Minnesota (0.4 percent).

In all six states, the weakness in personal income growth reflected declines or slow growth in net earnings.

                                                                     Slowest growing states
                -------------------------------- percent change from fourth quarter 1998 to first quarter 1999 ------------------------
                            Divi-                                                       Transpor-                 Finance,
                           dends,   Transfer           Earnings           Con-    Manu-  tation &  Whole-        insurance,
                Personal  interest,   pay-     Net     by place          struc-  factu-  public    sale   Retail  & real   Ser- Govern-
                 income    & rent    ments  earnings  of work/1/  Farms   tion    ring  utilities  trade   trade  estate  vices   ment
                ------- by place of residence ------  ---------------------------- earnings by place of work --------------------------

United States...   1.2      0.4      1.5       1.4       1.5     -21.6     2.7     0.6     0.6      0.9     1.4     3.1     2.5    1.6

North Dakota....   -.7       .3      1.4      -1.5      -1.0     -31.1     1.5     3.5     1.1      2.3     1.5     3.4     2.6    2.3
Nebraska........   -.4       .4      1.4      -1.0       -.8     -24.0      .2     1.2     1.0      -.1     -.1     3.7     1.3    1.2
South Dakota....   -.2       .3      1.4       -.8       -.5     -24.7     3.0     2.2      .7      3.7     1.9     3.8     2.4    1.4
Iowa............   -.2       .3      1.3       -.6       -.4     -29.1     2.5      .7      .3      1.5     1.7     2.8     1.6    1.6
Delaware........   0         .4      1.4       -.4       -.7     -23.4     9.9    -4.0     1.3       .7     1.9    -8.2     2.5    2.1
Minnesota.......    .4       .3      1.5        .3        .4     -45.4     4.8      .1    -1.0       .6     1.2    -1.4     2.1    1.6
---------------------------------------------------------------------------------------------------------------------------------------
  1.  Includes mining and agricultural services, forestry, and fishing, which are not shown separately.

By industry, in the five slowest growing Plains states — North Dakota, Nebraska, South Dakota, Iowa, and Minnesota — declines or slow growth in earnings by place of work mainly reflected large declines in earnings in farms, due to a reduction in farm subsidy payments from an unusually high level in the fourth quarter of 1998.

• In Minnesota, declines in earnings in transportation and public utilities and in finance, insurance, and real estate also contributed to slow growth in earnings. The earnings declines in these industries in the first quarter of 1999 reflected reductions in lump-sum payments from unusually high levels in the fourth quarter of 1998.
• In Delaware, declines in earnings in manufacturing, in finance, insurance, and real estate, and in farms contributed to the decline in earnings. The earnings decline in finance, insurance, and real estate reflected a reduction in lump-sum payments from an unusually high level in the fourth quarter.

Contributions to change

In the first quarter of 1999, U.S. personal income increased $91.1 billion. By type of income, most of the increase was accounted for by a $69.8 billion increase in net earnings. Dividends, interest, and rent increased $4.4 billion, and transfer payments increased $16.9 billion.

By region, the Southeast region accounted for the largest share (23.6 percent) of the increase in U.S. personal income. The increase in the Southeast was largely accounted for by Florida, Georgia, North Carolina, Virginia, and Tennessee.

Among states, California accounted for the largest share (16.7 percent) of the increase.

Earnings by place of work increased in all major industries except farms. Earnings in services contributed the most to the growth.

Revisions

The personal income estimates for the states and the nation have been revised for all four quarters of 1998 to incorporate newly available state source data for wage and salary disbursements (payrolls) since the previous release on April 27, 1999. A discussion of the newly available source data will be featured in the August 1999 Survey of Current Business.

  Revisions to the U.S. Total of the State Personal Income Estimates, 1998:I-1998:IV
               [Quarterly estimates seasonally adjusted at annual rates]

            --------------------------------------------------------------
                                   Previously
                                    published      Revised      Revisions
                                   --------- billions of dollars --------

             Year 1998 ...........    7,139.1       7,158.2         19.1
               Quarter I .........    7,005.8       7,016.0         10.2
               Quarter II ........    7,091.3       7,108.1         16.8
               Quarter III .......    7,177.1       7,199.4         22.3
               Quarter IV ........    7,282.1       7,309.2         27.1
            --------------------------------------------------------------

Definitions

Personal income is the income received by all persons from participation in production, from government and business transfer payments, and from government interest. Personal income is the sum of net earnings by place of residence, rental income of persons, personal dividend income, personal interest income, and transfer payments. Net earnings is earnings by place of work — the sum of wage and salary disbursements (payrolls), other labor income, and proprietors' income — less personal contributions for social insurance, plus an adjustment to convert earnings by place of work to a place-of-residence basis. Personal income is measured before the deduction of personal income taxes and other personal taxes and is reported in current dollars (no adjustment is made for price changes).

The estimate of personal income in the United States is derived as the sum of the state estimates; it differs from the estimate of personal income in the national income and product accounts (NIPA's) because of differences in coverage, in the methodologies used to prepare the estimates, and in the timing of the availability of source data.

Private goods-producing industries are defined to consist of farms; agricultural services, forestry, and fishing; mining; construction; and manufacturing. Private services-producing industries are defined to consist of transportation and public utilities; wholesale trade; retail trade; finance, insurance, and real estate; and services.

BEA's major national, international, regional, and industry estimates; the Survey of Current Business; and BEA news releases are available without charge on BEA's web site:

STAT-USA maintains an electronic bulletin board (EBB) and an Internet site that contain BEA estimates, the Survey of Current Business, and BEA news releases. For information about STAT-USA, go to www.stat-usa.gov>, or call (202) 482-1986. Subscriptions for single-user unlimited access to STAT-USA's Internet information are $50.00 for 3 months or $150.00 for one year.

Summary BEA estimates are available on recorded messages at the time of public release at the following telephone numbers:

(202) 606-5306 Gross domestic product
      606-5303 Personal income and outlays
      606-5362 U.S. international transactions

Most of BEA's estimates and analyses appear in the Survey of Current Business, BEA's monthly journal. The printed Survey of Current Business is available from the Superintendent of Documents, U.S. Government Printing Office, Washington D.C. 20402. First class mail: Annual subscription $104.00 domestic. Second class mail: Annual subscription $42.00 domestic, $52.00 foreign; single issue $15.00 domestic, $18.75 foreign.