New England Trails in Income Growth

Personal income growth in New England, where the recession struck first, was the slowest in the nation as the economy began to recover during the second quarter, the government said Tuesday.

Personal income in the New England states increased 0.2% in the second quarter after falling 0.1% in the first, according to the Commerce Department’s Bureau of Economic Analysis.

In California, personal income grew 1.2% from the first quarter to the second quarter.

“The second-quarter acceleration in personal income growth was largest in the Rocky Mountain, Mid-Atlantic and Great Lakes regions,” the study found. “In each, increases in personal income followed declines or no change in the first quarter.”

In fact, personal income growth actually accelerated in all regions except for the Southeast, where incomes slowed to a 0.9% advance from a 1.2% increase in the first quarter.

Nationally, personal income growth accelerated 1.1% after decelerating for four quarters--from 2.6% in the first quarter of 1990 to 1.5% in the second, 1.3% in the third, 0.9% in the fourth and 0.3% from last January through March.

Personal income is income received from all sources, less payments for Social Security. It is measured before deduction of personal income taxes and other personal taxes and is not adjusted for inflation.

Bureau economist Rudolph E. DePass said personal income growth lagged the rate of inflation in every New England state except Connecticut. There, income matched the 0.6% inflation rate used in the study.

“It means growth is still slow there, that things are not going quite so well,” he said.

DePass said payroll declines were posted in manufacturing, construction and the transportation, communications and utilities sectors in New England.

Two other states--Iowa and Louisiana--and the District of Columbia also had income growth below the inflation rate, while Alaska joined Connecticut in matching it.

U.S. Personal Income Here is a state-by-state listing of percentage changes in personal income from the first quarter to the second quarter in 1991. Wash.: +1.1 Ore.: +1.1 Calif.: +1.2 Mont.: +2.2 Idaho: +2.6 Nev.: +0.8 N.D.: +3.2 Wyo.: +1.6 Utah: +1.9 Ariz.: +1.4 S.D.: +2.2 Neb.: +2.3 Colo.: +1.2 N.M.: +1.5 Minn.: +1.5 Neb.: +2.3 Kan.: +2.1 Okla.:+1.5 Texas: +1.4 Wis.: +1.2 Iowa: -o.1 Mo.: +0.8 Ark.: +0.7 La.: +0.4 Mich.: +1.5 Ill.: +0.8 Tenn.: +0.9 Ala.: +0.8 Miss.: +1.3 Maine: -0.2 N.Y.: +1.2 Pa.: +0.9 Va.: +0.9 Ohio: +1.4 Ind.: +1.3 Ala.: +0.8 Ky.: +0.9 Ga.: +1.3 Fla.:+0.9 Hawaii: +1.2 Alaska: +0.6 Vt.: +0.2 N.H.: +0.5 Mass.: 0.0 R.I.: 0.0 Conn.: +0.6 N.J.: +0.8 W. Va.: +0.8 Del.: +1.6 Md.: +0.8 D.C.: +0.4 N.C.: +1.4 S.C.: +0.8