State Income rising 1.2% in 3rd quarter

State Income rising 1.2% in 3rd quarter: The farming, manufacturing and finance sectors helped boost personal income in Minnesota, one of just six states to see a rise.The farming, manufacturing and finance sectors helped boost Minnesotans' personal income by 1.2 percent during the third quarter to $229 billion, according to data released Friday by the U.S. Bureau of Economic Analysis.

While small, the uptick created the largest payday in more than two years and set the state apart from the rest of the nation.
Minnesota was one of just six states to see a rise in personal income during the quarter. State results for the most recent quarter compared to the $220 billion earned in the third quarter of 2009. It also surpassed the nation, which reported a growth rate of just 0.7 percent from July through September of 2010.


It is one bit of good news during a week of setbacks. The state announced Thursday that it lost 5,100 jobs in November, keeping the unemployment rate unchanged at 7.1 percent. Over a longer term, the news is more optimistic. The state has gained more than 44,000 jobs so far this year. Now it appears that personal income continues to make headway.
Unlike much of the nation, Minnesota has seen small but steady escalations in incomes over the past year.
Economists noted that the reach of the BEA's personal income data is quite broad. It serves as a benchmark for state officials to forecast tax revenue, and it helps federal officials determine matching grants and predict energy and water use. It also helps businesses and associations conduct accurate market research.

National personal income growth largely has ebbed and flowed, falling 0.3 percent a year ago, and then rising a respective 0.6 percent; 0.9 percent; 1.4 percent and 0.7 percent in each of the past four quarters. In all, 41 states saw income growth decline last quarter, as income from worker wages, interest, dividends, rent, social security and unemployment grew more slowly than in the past, Friday's report said. Three states were flat.

In Minnesota, work wages grew by 1.4 percent or $2 billion, while dividend, rent and interest income fell by 0.1 percent or $55 million. Unemployment income grew by 1.7 percent or $632 million.

Sectors contributing the largest boosts to earnings were farming (up 0.26 percentage points); manufacturing (up 0.13 points); finance (up 0.17 points); wholesale and retail (up 0.07 points); and information (up 0.03 points). Mining and transportation/warehousing each saw a tiny raise of 0.01 points.

Construction income fell by 0.02 points. Forestry, fishing and utilities were unchanged from the third quarter of 2009.

Posted in: fish production