News

Kansans’ personal income grows most in a year

The sharp rise in the stock market at the beginning of the year may have pushed Kansans’ personal income growth in the second quarter up the most in a year.

In the results from the U.S. Bureau of Economic Analysis, Kansas investment income such as dividends, interest and rents rose 2.5 percent from the quarter before.

Wages, bonuses and other worker compensation rose just 0.7 percent and government transfers, such as Social Security and Medicare, rose 0.6 percent.

Overall, Kansas ranked 29th among states for income growth from the quarter before.

The state with the fastest-growing income in the second quarter was North Dakota, with its oil boom, with a 2.1 percent increase from the quarter before. The slowest growth was in New Mexico, at 0.4 percent.

From July 1, 2011, to June 30, 2012, Kansas incomes have risen 2.2 percent. The U.S. as a whole saw incomes grow 3 percent.

The outsized investment income return in the second quarter was seen in all of the states and probably stemmed from the same thing, said Donna Ginther, director of the University of Kansas’ Center for Economic and Business Analysis.

“It would have to be something like the stock market,” she said.

The S&P 500 rose 10.3 percent in the first quarter. It fell 4 percent in the second quarter, which may mean a drag on income growth for the third quarter.

The biggest contributor to wage growth in the quarter was health care, but most sectors saw positive, if slow, growth.

  Comments