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The Honolulu Advertiser
Posted on: Saturday, October 17, 2009

Hawaii income up at twice U.S. rate


Advertiser Staff

Hawaii news photo - The Honolulu Advertiser
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Personal income in Hawaii rose an estimated 0.5 percent in the second quarter, more than double the 0.2 percent gain nationwide, according to a report released yesterday by the U.S. Bureau of Economic Analysis.

The agency said its estimate, if accurate, would be the first personal income growth in a year for the U.S. and for 15 states, including Hawaii.

While the growth is positive, it is attributed to what is known as transfer receipts such as unemployment benefits and American Recovery and Re-Investment Act payments in every state except for North Dakota, which led the country with an estimated 1.5 percent increase, largely attributed to farm employment gains.

Also, inflation rose 0.3 percent in the quarter, offsetting the national gain.

Personal income is income from all sources, including wages and salaries, business owner income, rental income, interest, dividends and transfer payments.

The agency's estimates are seasonally adjusted and represent the change in personal income for the three months ended June 30 compared with the first three months of the year.

The estimates also are subject to later revision. The new report revised a previous report for first-quarter figures that had said personal income in Hawaii rose 0.8 percent, the most in the nation. The latest report said Hawaii personal income in the first quarter decreased 0.6 percent, which was tied for fifth best.

For the second quarter, Hawaii's personal income gain was 17th highest. Nationwide, 36 states had gains, 12 had declines and two saw no change.

For all of 2008, Hawaii's per capita personal income was $42,055, the 15th highest in the nation.