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Personal Income Up in First Quarter07-05-16 | News

Personal Income Up in First Quarter
Construction Industry Helps Drive Growth

A recent report from the Bureau of Economic Analysis found that Washington, Michigan, Arkansas and Oregon saw the largest percentage earnings growth by state from Q4 2015 to Q1 2016.

Matching the pace from the fourth quarter of last year, state personal income grew at a 1.0 percent rate during the first quarter of 2016, with the Bureau of Economic Analysis stating that earnings grew in 22 of the 24 categories tracked by them. Construction, health care, and professional, scientific & technical services made the largest contributions to earnings growth.

According to an analysis by Mark Vitner, senior economist at Wells Fargo Securities Group, "Construction has gradually become a key driving force across much of the country, particularly in rapidly growing parts of the West and South. Washington and Utah are two notable standouts, with commercial construction leading the way in both states, led by strong growth in the technology sector."

Vitner also stated that investments in large industrial projects are helping to sustain the construction industry in Louisiana and Oklahoma "?utwo states whose economies are suffering from the downward drift in energy prices.

Other findings include healthcare earnings growth in every state, with "a disproportionately large contribution in slower growing states, such as Alaska, New Mexico and Montana," as well as healthy support to increased income in Massachusetts, Oregon and Tennessee.