Personal income, in current dollars, increased in 49 states and the District of Columbia in the second quarter of 2023, with the percent change ranging from 6.1 percent in New York and the District of Columbia to –2.7 percent in Maine (table 1), according to statistics released today by the U.S. Bureau of Economic Analysis (BEA).
Nationally, personal income increased $239.7 billion dollars in the second quarter of 2023. Earnings, property income (dividends, interest, and rent), and transfer receipts all contributed to the increase (chart 1).
Earnings increased in 48 states and the District of Columbia, while growing 5.3 percent nationally. The percent change in earnings ranged from 7.1 percent in Florida to –0.8 percent in North Dakota (table 2). Earnings was the leading contributor to growth in personal income in 44 states and the District of Columbia.
Earnings increased in 20 of the 24 industries for which BEA prepares quarterly estimates (table 3). Professional, scientific, and technical services; health care and social assistance; and finance and insurance were the leading contributors to the overall growth in earnings nationally.
- Finance and insurance was the leading contributor to the increase in earnings in three states, including New York, the state with the largest percent increase in personal income.
- Health care and social assistance was the leading contributor to the increase in earnings in 14 states, including Kentucky, the state with the second-largest percent increase in personal income.
- Professional, scientific, and technical services was the leading contributor to the increase in earnings in the District of Columbia and 18 states, including Massachusetts, the state with the third-largest percent increase in personal income.
Property income increased in all 50 states and the District of Columbia, while growing 3.7 percent nationally. The percent change in property income ranged from 5.2 percent in Texas to 2.6 percent in Iowa. Property income was the leading contributor to growth in personal income in five states (table 2).
Transfer receipts increased in 38 states and the District of Columbia, while growing 1.7 percent nationally. Increases in Medicaid benefits were partially offset by decreases in all other transfer receipts. The percent change in transfer receipts ranged from 12.1 percent in New York to –23.0 percent in Maine (table 2).
Medicaid benefits contributed to personal income growth in 46 states and the District of Columbia, including New York, Kentucky, and Massachusetts, the three fastest-growing states for personal income.
Transfer receipts was the leading contributor to the decrease in personal income in Maine, where one-time state refundable tax credits were paid in the first quarter of 2023.
Annual update of state statistics
The estimates for the second quarter of 2023 incorporate the results of BEA’s comprehensive update of personal income by state that was also released today. The annual estimates of personal income by state from 1979 to 2022 and the quarterly estimates of personal income by state from the first quarter of 1979 through the first quarter of 2023 were revised. The annual estimates of GDP by state from 2017 to 2022 were also revised. These updates incorporate new and revised source data that are more complete and more detailed than previously available, updates to seasonal factors, and the results of the September 28, 2023, comprehensive update of the National Economic Accounts. Our online journal, the Survey of Current Business, will publish an article in November describing the results.
BEA also released new estimates of per capita personal income for the second quarter of 2023. BEA used U.S. Census Bureau (Census) population figures to calculate per capita personal income estimates for the first quarter of 2020 through the second quarter of 2023. For earlier estimates, BEA used intercensal population statistics that it developed based on Census methodology. See “Note on Per Capita Personal Income and Population.”
GDP by state statistics for the second quarter of 2023 will be released later this fall; BEA will send out an advisory with the date and time when this information becomes available.
Next release: December 22, 2023, at 10:00 a.m. EST
Gross Domestic Product by State and Personal Income by State, 3rd Quarter 2023
