03/28/2024

Californians’ personal income growth rate matches national

When it comes to personal income growth, Californians matched the national average of 1.0 percent for the first quarter of the year, according to a new report released Tuesday by the federal Bureau of Economic Analysis.

The national rate is up from 0.3 percent in the fourth quarter of 2016, according to the BEA’s estimates. But for California, it’s been a barely measurable increase from the 0.9 percent growth rate of the previous quarter.

Overall, California ranks 29th among the state and the District of Columbia for personal income growth in the first quarter of 2017, based on the BEA’s data.

Earnings and personal current transfer receipts were the leading contributors to growth for the nation and in most states.

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 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, the BEA says.

The divergence in farm earnings reflects different types of farm output among states, it says.

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