Missouri Personal Income Continues Upward Trend
Personal income in Missouri increased 1.2 percent, from $188.36 billion in the fourth quarter 2005 to $190.69 billion in the first quarter 2006, according to the U.S. Bureau of Economic Analysis (BEA). This was a slightly lower than the fourth quarter 2005 increase of 1.6 percent, when Missouri experienced its fastest growth rate of any quarter in 2005.
Nationally, personal income rose 1.4 percent to $10.58 trillion, seasonally adjusted at an annual rate. The largest percentage increase occurred in South Dakota, where the percentage increase doubled from 1.2 percent in the fourth quarter 2005 to 2.4 percent in the first quarter 2006. Delaware was the only state to experience a percentage decrease, with a negative 1.1 percent in personal income.
Among border states, Missouri ranked third in total personal income with over $190 billion. The percentage increase tied Illinois for second to last among border states at 1.2 percent.
Three major components make up personal income: net earnings; dividends, interest and rent; and transfer payments. Net earnings, defined as the sum of wage and salary disbursements, supplements to wages and salaries, and proprietors income, increased 0.8 percent in Missouri from the fourth quarter of 2005 to the first quarter 2006. Dividends, interest, and rent increased by 1.1 percent. Transfer payments - payments to individuals and to nonprofit institutions by federal, state, and local governments and by businesses - increased 3.0 percent.
Industry sectors contributing the largest portions to earnings growth from the previous quarter include Management of Companies and Enterprises (0.26 percent), Construction (0.22 percent), Federal, Civilian Government (0.17 percent), Finance and Insurance (0.17 percent), and Health Care and Social Assistance (0.14 percent).
Four sectors BEA tracks experienced a percentage decrease in earnings. They are Farm (-0.71 percent), Military (-0.02 percent), Utilities (-0.01 percent), and Real Estate and Rental and Leasing (-0.01 percent).
Report by Michael Muin, maps by Melissa Lanclos, MERIC.