Mining, construction lead state’s income
n Louisiana personal income grew by 1.3 percent. n Nationwide, personal income grew by 1 percent.
Louisiana residents’ personal income showed the fourth highest rate of growth in the country during the second quarter, according to estimates released Monday by the U.S. Bureau of Economic Analysis.
Only Arizona, Florida and New Hampshire grew faster, the report shows.
Louisiana personal income grew by 1.3 percent from April 1 to June 30 to $187.6 billion, the report shows.
Nationwide, personal income grew by 1 percent.
The bureau defines personal income as the income received by all persons from all sources.
Louisiana’s growth was driven by the mining and construction industries, said Sung No, a professor of economics at Southern University.
The personal income growth was mainly due to payroll resulting from the chemical and petroleum industries and wages paid to construction workers.
The second-quarter growth helped offset the first quarter’s 1.3 percent drop in personal income nationwide, according to the Bureau of Economic Analysis. Louisiana’s personal income fell by 0.8 percent during the first quarter.
The first-quarter drop was mainly a reflection of the effects of “special factors,” according to the Bureau of Economic Analysis.
Those factors included the expiration of a payroll tax reduction and the decision, by people who expected income tax rates to increase, to accelerate bonuses and personal dividends to the fourth quarter of 2012.
Only three states saw personal income dip in the second-quarter.
South Dakota, Iowa and Nebraska were unable to overcome the drop in farm earnings, which fell 14.6 percent nationwide.
Meanwhile, Louisiana’s private nonfarm earnings grew by 1.5 percent, also faster than the national average of 1 percent, according to the bureau. Mining and construction made the largest contributions to the increase in private nonfarm earnings.
The same held true for other states with higher than average private nonfarm earnings, the report says.
Those states included North Dakota, 1.6 percent growth; Texas, 1.3 percent; and Wyoming, 1.2 percent.