Growth in personal income slows in Virginia
- December 17, 2010
Personal income growth slowed in the third quarter in Virginia, reflecting a slump in the national economy during the three-month period.
Virginia’s had personal income of $380 billion during the third quarter, according to the federal Bureau of Economic Analysis. That figure represented an increase of only 0.8 percent, down from a growth rate 1.2 percent during the second quarter.
The commonwealth reflected a national slowdown in personal income growth during the third quarter. Growth declined to 0.7 percent from 1.4 percent during the second quarter. Income growth accelerated in only six states during the third quarter while declining in 41 and remaining unchanged in three.
BEA defines personal income as income received by all persons from all sources.
The agency said the slowing growth in personal income was the result of declines in many major industries including construction and real estate. By contrast, farm earnings rose 12 percent during the third quarter, showing increases in every state.
The BEA ranked Virginia 26th among the 50 states in personal income growth for the second and third quarters. In neighboring states, the ranking was: Maryland, 29th; West Virginia, 31st; Kentucky, 32nd; Tennessee, 37th; and North Carolina, 22nd.
Among Southeastern states, Arkansas ranked the highest in personal income growth at No. 10.
Because of the growth in farm earnings, the Plains states posted the best personal income growth in the country for the second and third quarters. South Dakota, Nebraska, Iowa, North Dakota, Kansas and Minnesota were six states with the highest growth rates.