Personal Income Grows its
Fastest in Eight Quarters
Personal income in Missouri increased 2.1 percent, from $194.58 billion in the fourth quarter 2006 to $198.67 billion in the first quarter 2007, according to the U.S. Bureau of Economic Analysis (BEA). This was a higher increase than the fourth quarter 2006 increase of 1.7 percent, when Missouri experienced its fastest growth rate of any quarter that year and the highest since the fourth quarter 2004 of 2.4 percent.
Nationally, personal income rose 2.2 percent to $11.31 trillion, seasonally adjusted at an annual rate. The largest percentage increase occurred in New York, where the percentage increase nearly tripled from 1.7 percent in the fourth quarter 2006 to 4.7 percent in the first quarter 2007. North Dakota was the only state to experience a percentage decrease, with a negative 0.1 percent in personal income growth.
Among border states, Missouri ranked third in total personal income with nearly $200 billion, trailing only Illinois and Tennessee. Its percentage increase trailed only Illinois (2.5%). Kansas had the lowest first quarter personal income ($100 billion) and lowest percent increase (1.2%) of any border state.
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 1.9 percent in Missouri from the fourth quarter of 2006 to the first quarter 2007. Dividends, interest, and rent increased by 2.4 percent. Transfer payments - payments to individuals and to nonprofit institutions by federal, state, and local governments and by businesses - increased 3.5 percent.
Industry sectors contributing the largest portions to earnings growth from the previous quarter include Finance and Insurance (6.0 percent), Information (3.7 percent), Arts, Entertainment, and Recreation (3.5 percent), Federal government (3.2 percent), and Mining (2.5 percent).