MO personal income growth lags behind national rate

Personal incomes in Missouri grew by 3 percent in 2012, lagging behind the 3.5 percent income growth nationwide, according to a Commerce Department report released this morning.

The average personal income last year in Missouri was $39,049, ranking it 31st among U.S. states and the lowest among the seven states in the Bureau of Economic Analysis’ Plains region, according to Springfield Business Journal’s review of the 20-page report. The national personal income average was $42,693.

Average state personal income growth slowed nationwide from its 5.2 percent clip in 2011 and in Missouri from 4.55 percent growth, BEA data show.

By industry in Missouri, educational services led the income gains with 8.3 percent earnings growth last year, followed by 6.9 percent growth in professional, scientific and technical services, and 6.2 percent growth in utilities. Farming suffered the biggest blow, with a 32 percent drop in earnings partly due to drought conditions, followed by a 2.5 percent dip in federal government/civilian job earnings.

Across the country, personal income rates ranged from a 0.2 percent decrease in South Dakota to a 12.4 percent increase in North Dakota – the fifth time in the last six years it has recorded the fastest personal income growth of all states.

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, the report found.