Manufacturing leads as personal income increases 4.3 percent in 1st quarter
The US economy is chugging along, and first quarter earnings increased with manufacturing growth having a part leading the way.
Auto manufacturers’ profit-sharing payments boosted Americans’ earnings in nine states by $4.3 billion while durable manufacturing earnings increased by $20.7 billion.
Specifically, the Bureau of Economic Analysis reports the following:
- Nationwide, state personal income increased 4.3 percent at an annual rate in the first quarter of 2018, after increasing 4.7 percent in the fourth quarter of 2017.
- Personal income increased in all states and the District of Columbia. The percent change in personal income across all states ranged from 7.4 percent in Washington to 2.0 percent in Idaho.
- Earnings in durable manufacturing, which increased $20.7 billion dollars in the first quarter, was boosted by $4.3 billion dollars in profit sharing payments made by auto manufacturers to workers in nine states: Illinois, Indiana, Kansas, Kentucky, Michigan, Missouri, Ohio, Tennessee, and Texas.
Increases in all income components – earnings, property income (dividends, interest and rent), and transfer receipts – contributed to personal income growth in every state and the District of Columbia in the first quarter except one, Idaho.