Total and Per Capita Personal Income by State and Region

In 1994, total personal income in the Nation increased 5.9 percent after increasing 4.4 percent in 1993. Earnings increased faster in 1994 than in 1993 in all major industries except the Federal Government.

Per capita personal income in the Nation increased 4.9 percent in 1994 after increasing 3.3 percent in 1993 and 4.9 percent in 1992. The increases in per capita income have exceeded the increases in U.S. prices (as measured by the fixed-weighted price index for personal consumption expenditures) for 3 consecutive years. In 1994, prices increased 2.4 percent, the smallest increase since 1966. By State, increases in per capita income in 1994 exceeded or equaled 2.4 percent in all 50 States.

In 12 States (indicated in dark gray in the figure), increases in per capita personal income were at least 1.0 percentage point higher than the national average. Eleven of these States had below-average increases in population (see table).

Above-average increases in farm income, earnings in both durables and nondurables manufacturing, and in retail trade boosted personal income growth in Iowa, South Dakota, North Dakota, Minnesota, and Missouri.

In Michigan, Ohio, Wisconsin, and Indiana, personal income growth was boosted by above-average increases in earnings in durables manufacturing, in transportation and public utilities, in retail trade, and in government.

In Mississippi, West Virginia, and Louisiana, above-average increases in earnings from farm income, construction, mining, transportation and public utilities, services, and government led to above-average increases in per capita personal income.

In eight States (indicated in light gray in the figure), increases in per capita personal income in 1994 were at least 1.0 percentage point less than the U.S. average. Seven of these States had below-average increases in personal income; seven had above-average increases in population (see table).

Per capita personal income for selected States and the United States, 1993-94

                                      Percent change

                                   Per capita
Rank                            personal income   Population

       Fastest growing States:
 1      Iowa                          10.9           0.3
 2      South Dakota                   9.5            .7
 3      North Dakota                   8.6            .2
 4      Michigan                       8.5            .4
 5      Mississippi                    7.4           1.1
 6      Minnesota                      7.0            .9
 7      West Virginia                  6.4            .2
 8      Ohio                           6.3            .4
 9      Louisiana                      6.3            .6
 10     Wisconsin                      6.1            .7
 11     Indiana                        6.1            .8
 12     Missouri                       5.9            .8

       United States                   4.9           1.0

       Slowest growing States:
 43     Colorado                       3.9           2.6
 44     Washington                     3.8           1.6
 45     Texas                          3.7           2.0
 46     Wyoming                        3.6           1.3
 47     Alaska                         3.1           1.4
 48     Montana                        2.8           1.8
 49     California                     2.7            .7
 50     Hawaii                         2.4           1.1

In Washington, Texas, Wyoming, and Montana, personal income growth was slowed by declines in farm income. In Alaska, California, and Hawaii, declines in nondurables manufacturing, private service-type industries except retail trade, and government caused personal income growth to lag behind national figures. Cutbacks in defense-related industries in California and earnings declines in the construction and finance/insurance/real estate industries in Hawaii were responsible.

Source: Tran, D.D. and Friedenberg, H.L., 1995, Total and per capita personal income by State and region, Survey of Current Business 75(4):58-61.

COPYRIGHT 1996 Superintendent Of Documents
COPYRIGHT 2004 Gale Group