Indiana's gains in personal income in the past quarter were among the lowest 20% in the nation, according to a new report released Thursday by the U.S. Bureau of Economic Analysis.
Based on preliminary estimates, the state's growth in second quarter personal income, which includes seasonally adjusted income from all sources and does not adjust for taxes, ranked 41rst in the country. Hoosiers earned about $231.9 billion in second-quarter 2011 compared with $219.9 billion in the year-earlier period. Income is up about 1 percent quarter over quarter and 5 percent from second-quarter 2010.
Per capita personal income in Indiana is among the lowest in the nation, raking 41rst in the nation for the past three years. Per capita income was $34,042 in Indiana in 2010, the BEA reported. Nationwide, it averaged $39,945.
Gov. Mitch Daniels notes the state's lower-than-average cost of living helps offset the challenges of the lower income levels.
Industries of core importance to Indiana's economic health, including agriculture and manufacturing, helped bolster personal income within the state.
Nationwide ag contributions were flat, contributing nothing to the country's overall personal income growth. On a regional basis, though, its impact was noticeable.
In Indiana, personal income linked to ag grew by 0.06 percent quarter over quarter, representing 10 percent of the state's overall growth for the quarter and $134 million overall. This represented the second highest growth in the Great Lakes Region. In Illinois, 0.14 percent growth in personal income linked to ag drove the state's 0.76 personal income growth. Michigan and Wisconsin both saw declines in personal income linked to ag, while Ohio notched a 0.01 percent gain.
Iowa, Kansas, Nebraska and the Dakotas notched even higher gains in than Illinois in their ag sectors. Mississippi's grew as well, but overall the South lost personal income in ag as did every other region, except the Plains.
Both categories of manufacturing offered the contribution to personal income increases in Indiana: Personal income gains linked to durable goods rose 0.18 percent in the state, to $424 million, second after Wisconsin's 0.27 percent increase. Non durable goods contributed income rose 0.02 in Indiana. Nationwide, durable goods-linked income was up0.08 percent and non-durable goods 0.02 percent.
Income growth in Indiana's health care and social assistance fields was up 0.14 percent to $320 million.
Growth in income linked to retail trade and transportation and warehousing grew at similar rates to ag. Construction income grew by 0.03 percent. The state notched a 0.05 percent income loss in finance and insurance. Income linked to government jobs was mostly down, except for military-related, which was up 0.01 percent.
Personal income in the Great Lakes Region, which includes Illinois, Michigan, Ohio and Wisconsin, grew to 1.8 trillion in second-quarter 2011 from 1.7 trillion a year earlier