State Quarterly Personal Income, 1st quarter 2018
State personal income increased 4.3 percent at an annual rate in the first quarter of 2018, after increasing 4.7 percent in the fourth quarter of 2017, according to estimates released today by the Bureau of Economic Analysis1 (table 1). Personal income increased in all states and the District of Columbia. The percent change in personal income across all states ranged from 7.4 percent in Washington to 2.0 percent in Idaho.
Increases in all income components – earnings, property income (dividends, interest and rent), and transfer receipts – contributed to personal income growth in every state and the District of Columbia in the first quarter except one, Idaho (table 2).
Earnings. Earnings increased 4.7 percent in the first quarter of 2018, after increasing 4.6 percent in the fourth quarter of 2017 and was the leading contributor to personal income growth in most states, including the four fastest growing states – Washington, Utah, Delaware, and Kentucky.
- Information services was the leading contributor to the earnings increase in Washington (table 3).
- Durable manufacturing was the leading contributor to the earnings increase in Utah and Kentucky.
- Finance and insurance was the leading contributor to the earnings increase in Delaware.
Earnings increased in 23 of the 24 industries for which BEA prepares quarterly estimates (table 4). For the nation, healthcare and social assistance; durable manufacturing; and professional, scientific, and technical services were the leading contributors to overall growth in personal income (chart 1).
- Earnings in durable manufacturing, which increased $20.7 billion dollars in the first quarter, was boosted by $4.3 billion dollars in profit sharing payments made by auto manufacturers to workers in nine states: Illinois, Indiana, Kansas, Kentucky, Michigan, Missouri, Ohio, Tennessee, and Texas.
- Federal civilian and military earnings increased $6.0 billion and $3.4 billion dollars, respectively, due to pay raises that took effect in the first quarter.
- Mining earnings increased $3.1 billion dollars in the first quarter, the largest increase since the second quarter of 2014 as higher prices for energy related commodities led to increased earnings.
Transfer Receipts. Transfer receipts increased 5.0 percent for the nation in the first quarter of 2018, after increasing 2.1 percent in the fourth quarter of 2017. The first quarter growth primarily reflects a 2.0 percent increase in the Social Security cost of living adjustment.
Property Income. Property income increased 2.6 percent for the nation in the first quarter of 2018, after increasing 7.4 percent in the fourth quarter.
Presentation Change of State Quarterly Personal Income. Growth rates in personal income presented in this release are annualized. This represents a change in presentation from prior releases. Annualized growth rates show what the percent change in personal income would be if the quarterly rate continued for four quarters. This conforms the presentation of growth rates in state personal income with the release presentations of other BEA statistics and will allow data users to more easily compare growth in state personal income with other quarterly BEA statistics such as U.S. GDP, U.S. personal income and GDP by state. Quarterly personal income growth rates will continue to be available to data users in BEA's interactive database.
Updates to Personal Income. Today, BEA also released revised quarterly estimates for 2017:Q1 to 2017: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.
Comprehensive Update of the State and Local Area Personal Income Accounts On September 25, 2018, BEA will release the first set of updated estimates from the 2018 comprehensive update of the state personal income accounts. In November, BEA will release updated annual estimates of personal income for local areas.
Next release: September 25, 2018, at 8:30 A.M. EDT — State Personal Income: Second Quarter 2018