State personal income slowed in Q3 2013, USA
State personal income slowed down to 1.1% in Q3 2013, compared to 1.2% in Q2 2013, according to estimates published by the US Bureau of Economic Analysis.
State personal income slowed down in 25 states, grew faster in 22 and remained the same in 3 plus the District of Columbia.
Growth rates of state personal income ranged from 1.9% in Mississippi to 0.4% in New Mexico.
After no change in the second quarter, the national price index for personal consumption expenditures rose 0.5% in Q3.
Just over half of the personal income growth in Mississippi ($1 billion) was a current transfer receipt for a class-action suit settlement that alleged racial discrimination by the Agriculture Department in its evaluation of farm loan applicants during the period 1981-1996.
Of the $3.4 billion national settlement, Mississippi received the most, followed by Alabama, which received slightly less than $1 billion.
Earnings by state and industry
Overall, earnings increased by 0.7% in Q3 2013, compared to 1% in Q2. While increasing in all sectors of private industry, earnings shrank by 2.6% among federal employees. While increasing in every state, earnings fell by 0.3% in the District of Columbia.
The major contributions to earnings growth in Q3 2013 were:
- Construction, +$7.6 billion.
- Finance, +$7.4 billion.
- Professional services, + $7.4 billion.
Civilian federal earnings, on the other hand, fell $7.8 billion, the largest of seven successive quarterly declines.
The third quarter civilian federal earnings decline included $5 billion due to lay offs during the partial government shutdown, mainly in the Department of Defense.
The decline in civilian federal earnings shrank personal income by 0.2 percentage point in Maryland and Hawaii and 0.3 in Virginia. The Bureau added “The 0.6 percent personal income growth in these three states exceeded only New Mexico’s 0.4 percent growth.”
In Q3 2013, property income grew by 1.9%, the net effect of a 3.6% gain in dividends, a 2.1% increase in rent, and a 0.7% appreciation in interest income.
In Q2 2013 property income had increased by 2.8%. Property income growth in Q3 was greater than personal income growth.