Dealers planning to attend consumer shows in the next few months may benefit from understanding how personal income is faring in their part of the country. The Bureau of Economic Analysis (BEA) has issued its report for personal income change for the third quarter of 2019:
State personal income increased 3.8 percent at an annual rate in the third quarter of 2019, a deceleration from the 4.4 percent increase in the second quarter. The percent change in personal income across all states ranged from 15.2 percent in South Dakota to 1.9 percent in West Virginia and Wyoming.
Increases in earnings, and in transfer receipts, contributed to personal income growth nationally and in most states (table 2). These increases were partially offset by decreases in property income (dividends, interest and rent).
Earnings
For the nation, earnings increased 5.2 percent in the third quarter, after increasing 2.9 percent in the second quarter. Earnings increased in 20 of the 24 industries for which BEA prepares quarterly estimates. Farming; state and local government; and healthcare and social assistance were the leading contributors to overall growth in earnings.
Increases in farm earnings were the leading contributors to income growth in each of the ten fastest growing states, reflecting increases in payments associated with the Department of Agriculture’s Market Facilitation Program in the third quarter.
Transfer Receipts
Transfer receipts increased 5 percent for the nation in the third quarter, after increasing 6 percent in the second quarter. Growth in transfer receipts ranged from 6.4 percent in California to -0.2 percent in Alaska.
Property Income
Property income decreased 1.2 percent for the nation in the third quarter, after increasing 7.9 percent in the second quarter. Property income decreased in almost every state, ranging from unchanged in Nevada and Georgia to -2.8 percent in New York.
