Friday, June 18, 2010

Personal income rises in Colorado

Personal income increased in Colorado during the first quarter of 2010, increasing to 208.8 billion dollars. According to new data released today by the Bureau of Economic Analysis, personal income increased .43 percent in Colorado from the fourth quarter of 2009 to the first quarter of this year. Year-over-year, personal income in Colorado rose .34 percent from the first quarter of 2009 to the same period this year.

Nevertheless, personal income in Colorado is still down 2.3 percent from the peak reached during the third quarter of 2008 when personal income was more than 213.9 billion.

Personal income totals are not adjusted for inflation.

Although personal income fell faster and to a greater extent than in Colorado during late 2009, Colorado now lags the nation in its rate of recovery. Nationally, personal income is down only .86 percent from peak levels reached during the third quarter of 2008.

Using 2008 population estimates, the most recent data available, per capita income is $41,668 in Colorado and is $40,391 nationwide.

Additionally, state personal income growth averaged 0.9 percent in the first quarter of 2010 up from 0.5 percent in the fourth quarter of 2009.. Personal income increased in all but two states with growth ranging from 1.6 percent in Mississippi to –2.0 percent in North Dakota. Inflation, as measured by the national price index for personal consumption expenditures, declined to 0.4 percent in the first quarter from 0.6 percent in the fourth quarter.1

The industry making the largest contribution to first-quarter personal income growth nationally was health care. The administrative and waste management industry and the military made the next largest contributions. The military received a 3.4 percent pay raise in the first quarter while federal civilian workers received an average 2.0 percent increase. Construction and real estate earnings continued to fall.

Personal income is the income received by all persons from all sources. Personal income is the sum of net earnings by place of residence, property income, and personal current transfer receipts. Total personal income will rise as population rises, even if household incomes are declining. Property income is rental income of persons, personal dividend income, and personal interest income. Net earnings is earnings by place of work (the sum of wage and salary disbursements, supplements to wages and salaries, and proprietors' income) less contributions for government social insurance, plus an adjustment to convert earnings by place of work to a place-of-residence basis. Personal income is measured before the deduction of personal income taxes and other personal taxes and is reported in current dollars (no adjustment is made for price changes).