Texas Has Fastest Personal Income Growth In U.S. In Second Quarter

Professional, scientific, and technical services was the leading contributor to the earnings increase in Texas…

WASHINGTON – Personal incomes in Texas grew 6 percent in second quarter 2018—the fastest in the country—according to estimates from the Bureau of Economic Analysis.

Spending is a traditional way to gauge the economy’s health, but don’t forget the flip side – income. BEA’s personal income statistics tell a lot about how U.S. workers and businesses are faring.

State personal income increased 4.2 percent, at an annual rate, in the second quarter of 2018, a deceleration from the 5.0 percent increase in the first quarter, according to estimates released today by the Bureau of Economic Analysis (table 1).

The percent change in personal income across all states ranged from 6.0 percent in Texas to 1.6 percent in Washington. Increases in earnings, property income, and transfer receipts all contributed to growth in second quarter personal income (table 2).

Earnings. For the nation, earnings increased 4.5 percent in the second quarter of 2018, after increasing 5.1 percent in the first quarter, and increased in 21 of the 24 industries for which BEA prepares quarterly estimates (table 4). Earnings was the leading contributor to personal income growth in most states, including the four states with the fastest personal income growth — Texas, Louisiana, Kentucky, and North Dakota.

• Professional, scientific, and technical services was the leading contributor to the earnings increase in Texas (table 3).
• Construction was the leading contributor to the earnings increase in Louisiana.
• Health care and social assistance was the leading contributor to the earnings increase in Kentucky.
• Mining was the leading contributor to the earnings increase in North Dakota.

Nationally, earnings increased fastest in farming and mining (chart 1). Although neither industry contributed more than 0.2 of a percentage point to personal income growth nationally; both industries were important contributors to growth in several states.

Nationally, earnings increased fastest in farming and mining (chart 1). Although neither industry contributed more than 0.2 of a percentage point to personal income growth nationally; both industries were important contributors to growth in several states.

• Farm earnings contributed half a percentage point or more to increases in personal income in nine states — Arkansas, Kansas, Mississippi, North Dakota, Montana, Idaho, Minnesota, Indiana, and Iowa.

• Mining earnings contributed half a percentage point or more to increases in personal income in seven states — North Dakota, Wyoming, Oklahoma, Alaska, Texas, New Mexico, and Colorado.

Property income. Property Income increased 3.3 percent in the second quarter of 2018, after increasing 3.6 percent in the first. Growth rates ranged from 3.7 percent in Arkansas to 2.9 percent in the District of Columbia.

Transfer receipts. Transfer receipts increased 4.1 percent in the second quarter of 2018, after increasing 6.6 percent in the first quarter. Growth rates ranged from 9.4 percent in Connecticut to -2.5 percent in the District of Columbia.

Source: Bureau of Economic Analysis