State ranks 48th in income growth

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Personal income growth in Delaware ranked near the bottom in the nation, according to figures from the U.S. Commerce Department.

The 2.3 percent growth figure was 48th, according to the U.S. Bureau of Economic Analysis. Click on the following lin  for the full report. spi0313

Nationwide, average state personal income growth slowed to 3.5 percent in 2012 from 5.2 percent in 2011,  according to the report.

While enjoying a jobless rate below the national average, job growth in Delaware  has been sluggish coming out the recovery.

State personal income growth ranged from -0.2 percent in South Dakota to 12.4 percent in North Dakota. I

Inflation, as measured by the national price index for personal consumption expenditures, fell to 1.8 percent in 2012 from 2.4 percent in 2011.  Delaware’s income growth was the lowest among states in the region. The report noted that New York and New Jersey were negatively affected by the impact  of Hurricane Sandy in late 2012. South Dakota’s  income decline was due to the effect of last year’s drought, with Nebraska, Kansas and Iowa all feeling the impact on farm income.

For the fifth time in the last six years North Dakota has had the fastest personal income growth of all states. Since 2006, personal income in North Dakota has grown at a compound annual rate of 9.2 percent, substantially outpacing the 2.9 percent growth rate of all other states. The oil boom   is even being felt in Delaware, with the  Delaware City Refinery expanding  its rail facilities to handle crude oil coming from North Dakota.

Fourth-quarter earnings in the finance industry (Wall Street firms)  were also boosted by accelerated bonus payments or other irregular pay in anticipation of tax rate changes. Finance earnings grew 10.5 percent in New York, 7.9 percent in Connecticut, and 6.4 percent in New Jersey, states where the finance industry is  prominent. Finance earnings grew 2.7 percent in the other states.

Delaware did not see a boost from accelerated bonuses. Income actually declined slightly  in financial services. Other weak spots were construction and management jobs.

 

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