West Lags in Per-Capita Income Growth : Wages: 2.1% rate for region is among lowest in country and below that of inflation. Plains, Great Lakes states set pace.

The personal income of Americans living in the West, including California, grew more slowly than that of people in any other part of the country last year, a Commerce Department study shows.

Residents of the Plains states enjoyed the fastest growth in personal incomes, boosted in part by a rebound in farm income that had fallen during the 1993 Midwest floods.

Residents in many of the Great Lakes states shared in the brisk growth, due to stronger durable-goods manufacturing and increased construction, according to the study released Wednesday by the department’s Bureau of Economic Analysis.

Per-capita income is the annual income of residents divided by a state’s population. The study found that per-capita income for the nation rose 4.3% in 1994 to $21,699.

Inflation, as measured by a special price index for personal consumption expenditures, was 2.4%.

Per-capita incomes ranged from $29,044 in Connecticut to $15,793 in Mississippi.

The slowest growth was in the West, where per-capita income was $22,353 in 1994, a 2.1% rise. Income growth trailed the rate of inflation in California, Alaska, Hawaii and Montana.

Incomes shot up 6.4% in the Plains states and 5.8% in the Great Lakes region, compared to a 2.5% increase in the far West and 3.6% in the Rocky Mountain states.

Thirteen states had income growth of more than one percentage point above the 4.3% national average.

They included the Plains states of Iowa, North and South Dakota, Minnesota, Nebraska and Missouri, where farm income and construction earnings increased substantially.

“The Corn Belt had record corn production in 1994,” said Jim Zavrell, a Commerce Department economist.

In the Great Lakes states of Michigan, Ohio, Indiana and Wisconsin, earnings increases were strong in construction and in durable-goods manufacturing, mainly motor vehicles, fabricated metal products and industrial machinery and equipment.

Strong earnings increases in construction and private-service-type industries also boosted incomes in Mississippi, Louisiana and New Hampshire, the study found.

But the income growth in six states lagged the U.S. average by more than one percentage point.

They included Washington, Wyoming, California and Montana, where farm income declined. Washington and California were also hurt by shrinking earnings in the aircraft industry. Montana saw earnings decline in the lumber and wood products industry.

In Alaska and Hawaii, earnings either declined or increased at below-average rates in durable- and non-durable-goods manufacturing and in government. In Hawaii, earnings declined in construction and increased at a below-average rate in private-service-type industries.

In all six states, personal income increased at below-average rates and, except for California, population increased at above-average rates.

The Rocky Mountain region was the fastest-growing in terms of population, said Commerce Department economist Duke Tran. Population growth in the region was 2.5 times faster than the U.S. average.

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State-by-State Look

Here is a listing of per-capita incomes for 1994, followed by each state’s income ranking last year and the percentage change from 1993.

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State Income Rank %Chg. Ala. $17,925 40 4.8 Alaska 23,395 10 2.2 Ariz. 19,153 37 5.3 Ark. 16,817 49 5.2 Calif. 22,353 14 2.1 Colo. 22,320 15 3.5 Conn. 29,044 1 3.4 Del. 23,015 11 4.4 Fla. 21,651 20 4.1 Ga. 20,198 29 5.0 Hawaii 24,042 6 2.0 Idaho 18,406 39 3.9 Ill. 23,607 9 4.8 Ind. 20,262 28 5.4 Iowa 20,176 30 9.6 Kan. 20,762 24 4.4 Ky. 17,753 42 5.1 La. 17,615 44 6.4 Maine 19,482 35 4.3 Md. 24,847 5 3.9 Mass. 25,609 4 4.9 Mich. 22,173 18 7.6 Minn. 22,257 16 6.4 Miss. 15,793 50 7.3 Mo. 20,562 25 5.4 Mont. 17,824 41 1.1 Neb. 20,824 23 5.7 Nev. 23,817 7 4.8 N.H. 23,680 8 6.1 N.J. 27,742 2 3.4 N.M. 17,025 48 4.5 N.Y. 25,731 3 3.6 N.C. 19,576 34 4.6 N.D. 18,621 38 8.2 Ohio 20,883 22 5.8 Okla. 17,602 45 3.3 Ore. 20,468 26 4.8 Pa. 22,195 17 4.1 R.I. 21,948 19 3.4 S.C. 17,712 43 4.9 S.D. 19,630 33 8.2 Tenn. 19,446 36 5.3 Texas 19,719 32 3.7 Utah 17,172 46 5.0 Vt. 20,101 31 3.6 Va. 22,501 13 3.9 Wash. 22,542 12 3.2 W.Va. 17,094 47 5.3 Wis. 20,887 21 5.4 Wyo. 20,378 27 2.7 USA $21,699 4.3

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Source: Commerce Department