Friday, September 28, 2012

Personal income in Colorado up, slightly outpaced by nation

Personal income in Colorado rose 3.2 percent from the second quarter of 2011 to the second quarter of this year. According to the latest personal income numbers, released this week by the Bureau of Economic Analysis, nationwide personal income increased 3.3 percent over the same period.

In nominal terms, national personal income is now up by 6.4 percent over the pre-recession peak in personal income reached during the second quarter of 2008. In Colorado, personal income is now up by 6.5 percent from the peak also reached during the second quarter of 2008 in Colorado. 

When adjusted for inflation, however, personal income totals are still below pre-recession peaks. When calculate din constant 2001 dollars, nationwide personal income is down 1.3 percent from the pre-recession peak and Colorado personal income is down 1 percent.

When indexed and charted, we can see that both the US and Colorado are a bit below peak levels and that the nation has shown slightly more growth than Colorado in personal income in most quarters during the past decade.

Personal income due to wage earnings has increased less in Colorado than nationwide. Income due to wages was up 3.4 percent year over year nationwide from the second quarter of last year to the second quarter of this year. But, wage earnings were up 2.9 percent in Colorado over the same period.

According to the BEA press release, Colorado is in the third quintile for quarter-to-quarter growth, placing it in the middle of the pack among the state.  Personal income grew 1 percent nationwide and grew .97 percent in Colorado, from the first quarter to the second quarter of this year.

According to the release:

State personal income growth slowed to 1.0 percent in the second quarter of 2012, from 1.7 percent in the first quarter, according to estimates released today by the U.S. Bureau of Economic Analysis. Growth slowed in 39 states plus the District of Columbia, accelerated in 10, and was unchanged in Nevada. Personal income growth ranged from 2.1 percent in North Dakota to 0.4 percent in New Mexico. Inflation, as measured by the national price index for personal consumption expenditures, slowed to 0.2 percent in the second quarter from 0.6 percent in the first quarter.