State Quarterly Personal Income, 1st quarter 2017
State personal income growth accelerated to 1.0 percent on average in the first quarter of 2017 from 0.3 percent in the fourth quarter of 2016, according to estimates released today by the Bureau of Economic Analysis (table 1). Earnings and personal current transfer receipts were the leading contributors to growth for the nation and in most states (table 2).
Personal Income grew 1.6 percent in Idaho, faster than in any other state. Four other states–Louisiana, Michigan, Florida, and Texas–had the next fastest growth in personal income at 1.3 percent. Kansas, Minnesota, North Dakota, and Iowa had the slowest growth, and Nebraska at -0.1 percent was the only state where personal income declined.
Earnings. Earnings increased 0.9 percent in the first quarter of 2017. Earnings growth ranged from 1.5 percent in Michigan to -0.7 percent in Nebraska.
- Growth in farm earnings was a leading contributor to growth in total earnings in Idaho, but was also a leading contributor to slow-growing or declining earnings in Minnesota, Kansas, Iowa, North Dakota, and Nebraska (table 3). The divergence in farm earnings reflects different types of farm output among states.
- Earnings growth in durable goods manufacturing was a leading contributor to growth in total earnings in Michigan. Auto workers in Michigan and in eight other states–Illinois, Indiana, Kansas, Kentucky, Missouri, Ohio, Tennessee and Texas–received profit-sharing payments totaling $5.3 billion (annual rates) in the first quarter of 2017, under terms of agreements between manufacturers and the United Auto Workers signed in 2015.
- Mining earnings, which grew 2.8 percent nationally after nine consecutive quarterly declines, was the leading contributor to growth in total earnings in Texas.
- Growth in construction earnings continued in the first quarter of 2017 and was the leading contributor to growth in total earnings in Florida and in Louisiana.
For the nation, earnings grew in 21 of the 24 industries for which BEA prepares quarterly estimates (table 5). Professional, scientific, and technical services; construction; and health care and social assistance were the leading contributors to overall growth in personal income.
Transfer Receipts. Transfer receipts grew 1.5 percent for the nation in the first quarter of 2017. Growth rates ranged from 2.9 percent in Florida to -0.7 percent in Illinois. The first quarter growth reflects an increase in refundable tax credits, and a 0.3 percent increase in the Social Security cost of living adjustment. The growth in transfer receipts had the largest impact in Florida and in Louisiana where it accounted for almost half of each state's personal income growth.
Updates to Personal Income. Today, BEA also released revised quarterly personal income estimates for 2016:Q1 to 2016:Q4. Updates were made to incorporate source data that are more complete and more detailed than previously available, and to align the states with revised national estimates.
Upcoming Annual Update of the State Personal Income Accounts. Revised annual and quarterly state personal income estimates for 2014 to 2016 will be released on September 26, 2017. In addition, revised estimates for 2017:Q1 and preliminary estimates for 2017:Q2 will also be released. The October Survey of Current Business will contain an article that describes the results.
Next release: September 26, 2017, at 8:30 A.M. EDT — State Personal Income: Second Quarter 2017