Incomes Rise 1.2%, Paced by Western States

Personal incomes grew faster than inflation in 43 states from January through March, the Commerce Department said Wednesday.

For the nation, personal incomes increased 1.2% during the first quarter, the same as during the final three months of 1995, the department’s Bureau of Economic Analysis said.

That was double the 0.6% increase in prices that Americans paid during the period, as measured by a price index for personal consumption expenditures, the department said.

As usual, changes in personal income varied among states and regions, ranging from 3.6% growth in Idaho to a 0.6% decline in Michigan due a strike that closed most General Motors Corp. plants.

The West had nine of the 13 states with the fastest-growing incomes, due to increases in earnings in durable-goods manufacturing, retail trade, construction and farming.

In those 13 states, increases in personal incomes were 0.6 percentage point or more above the 1.2% national average.

Personal income is described as that received by all individuals from all sources, less Social Security payments. It is measured before tax deductions and is not adjusted for inflation.