Personal income increased by 0.9% in Arkansas in the third quarter, a slightly smaller increase than the nationwide gain of 1.1%. Percentage changes among the 50 states fell within a relatively narrow range, from +0.4% in Oklahoma to +1.4% in South Dakota. Arkansas’ growth rate ranked #41. Over the most recent four quarters, Arkansas personal income increased by 3.3%, compared to a 3.5% increase for the U.S. Over the course of the current economic expansion (from 2010:Q1), Arkansas income growth has averaged 4.2% while the U.S. average has been 4.3%.
Net earnings rose 1.1% in Arkansas and 1.3% for the U.S. This morning’s report from the Bureau of Economic Analysis noted that earnings “was the leading contributor to growth in personal income in most states.” Income from dividends, interest, and rent was also an important contributor for Arkansas, as has been the case throughout the current expansion.
Earnings by sector: Earnings growth in the third quarter was strongest in service-providing sectors, although growth was spread fairly evenly across sectors. The categories of Farm income, Mining, and Forestry were the only sectors with negative income growth. Income in the construction sector showed an encouraging 1.1% rate of increase in Arkansas.
On a per capita basis, Arkansas personal income increased 0.8% in the third quarter, a slightly smaller increase than the U.S. average of 0.9%. At $39,602, per capita personal income was 79.7% of the U.S. average ($49,681), down one-tenth of a percentage point from the 79.8% reading in the second quarter.