Missouri Personal Income Growth Solid in 4th Quarter of 2005
Personal income in Missouri increased 1.7 percent, from $185.8 billion to $188.9 billion, from the third quarter of 2005 to the fourth quarter of 2005, according to recently released data from the U.S. Bureau of Economic Analysis (BEA). This was Missouri's fastest growth rate for any quarter in 2005. National personal income growth rebounded to 2.3 percent in the fourth quarter, as personal income in hurricane-stricken Louisiana and Mississippi returned to closer to normal levels. Excluding Louisiana, U.S. fourth quarter income growth was 1.72 percent.
Louisiana had the largest gain in personal income from the third quarter of 2005 to the fourth quarter of 2004 at 97.9 percent. Mississippi also rebounded, increasing by 7.0 percent. Excluding Louisiana and Mississippi, North Dakota was the fastest, increasing by 4.3 percent. Montana's 0.8 percent growth was the slowest of the quarter.
Missouri ranked 23rd among the states and District of Columbia in personal income growth in the 4th quarter, similar to increases in most of Missouri's neighboring states:
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 1.4 percent in Missouri from the third quarter of 2005 to the fourth quarter of 2005. Dividends, interest, and rent increased by 2.9 percent. Transfer payments -- payments to individuals and to nonprofit institutions by federal, state, and local governments and by businesses -- increased 1.8 percent.