LITTLE ROCK — Personal income grew in all 50 states in the second quarter compared with the first quarter, according to the U.S. Bureau of Economic Analysis.
Arkansas’ total personal income increased by 0.9 percent, one-tenth of a point behind the national average.
“We’ve had five consecutive quarters of positive growth in Arkansas,” said Michael Pakko, chief economist for the University of Arkansas at Little Rock’s Institute for Economic Advancement. “That’s a pretty good record [on which] to hang your hat. And it shows that economic recovery is well under way.”
Personal income is a factor in determining how the overall economy is performing, Pakko noted.
That was reflected in another report, this one by the National Bureau of Economic Research, a panel of academic economists based in Cambridge, Mass., which said Monday that the recession ended in June 2009 - after 18 months.
Pakko said that consistent growth in income will lead to more consumer spending and possibly business expansion as the recovery proceeds.
Arkansas’ personal income was about $96 billion in the second quarter of 2010 compared with approximately $95 billion in the first quarter.
Arkansas was 32nd in terms of improvement in total personal income.
In the rest of the Southeast, which matched the national average of 1.0 percent growth for the second quarter, Kentucky was sixth in improvement, followed by North Carolina, 10th; Louisiana, 14th; West Virginia, 15th;Alabama, 19th; Tennessee, 21st; South Carolina, 26th; Virginia, 34th; Florida, 37th, and Mississippi, 46th.
The largest increase in personal income was 2 percent in North Dakota, and Nevada’s growth was the smallest, at 0.3 percent.
Personal income is derived from multiple sources, including wages, rental income, dividend income, unemployment insurance and interest income. Divided by population, it yields per capita income.
In 2009, per capita personal income in Arkansas was $32,423, down from $32,695 in 2008. Despite falling, Arkansas moved up from 46th to 44th.
The data initially released for 2009 placed Arkansas 45th, but after revisions the state moved up one spot, said John Shelnutt, administrator for economic analysis and tax research for the state’s Department of Finance and Administration.
However, the report shows that the difference for per capita income among the states ranked 43rd, 44th, 45th and 46th is minimal.
South Carolina was ranked 45th after the revisions, with a per capita income of $32,338, only $85 behind Arkansas.
Front Section, Pages 1 on 09/21/2010