Growth of Per-Capita Income Slowed in ’90

The Southwest and Rocky Mountain regions posted the fastest increases in per-capita income last year as an economy sliding into recession slowed gains throughout the rest of the nation, the government said Friday.

“The slowdown in the nation’s per-capita personal income growth that began in the New England, Mideast and Southeast regions in 1989 spread to all regions except the Southwest in 1990,” according to a study by the Commerce Department’s Bureau of Economic Analysis.

Per-capita incomes in the Southwest increased 6.2% in 1990, to $16,311, even faster than the 6.1% gain a year earlier.

And while the Rocky Mountain region enjoyed faster growth, a 6.6% increase to $16,668, the advance was 1 percentage point less than the 7.6% jump enjoyed the previous year.

Nationally, incomes rose 5.4% to $18,691, down from 6.8% growth in 1989. The recession began in July, 1990.

Per-capita income is the annual total personal income of residents divided by resident population as of July 1, the department said. It can change from year to year because of changes in total income or population or both.

People living in South Dakota enjoyed the fastest per-capita income growth, 9.8% to $15,797. Still, that was slower than the 11.4% rate in 1989.

New Hampshire residents experienced the slowest advance, a 2.0% increase to $18,078. Their incomes had grown 5.1% a year earlier. Although Connecticut continued to enjoy the highest per-capita income--$25,484--its growth rate in 1990 was 4.2% compared to 6.6% in 1989.