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Personal income falls in Oklahoma
By LAURIE WINSLOW World Staff Writer
Published:
6/18/2009 4:58 PM
Last Modified: 6/18/2009 4:58 PM
Like most states, Oklahoma saw its personal income decline in the first quarter, according to information released Thursday by the Bureau of Economic Analysis, a branch of the U.S. Department of Commerce.
The state’s personal income dipped 0.1 percent, a showing that was 15th best in the nation. By contrast, U.S. personal income fell 0.4 percent in the quarter.
Oklahoma joined 36 other states that saw drops in personal income. Hawaii’s grew the fastest during the quarter, while Alaska’s decreased the most.
Personal income is a comprehensive measure of the income received by all residents from all sources. In addition to wages and salaries, it includes employee pension and insurance funds, dividends and interest income, and other types of income, according to the BEA.
Oklahoma’s first-quarter personal income totaled $135.3 billion.
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As in the past, the oil industry was a major contributor to the state’s personal income performance.
“The mining industry, which includes oil and gas extraction, contributed half a percentage point to the decline. That was offset by increases elsewhere, but the point is that that was the largest industrial (sector) to decline,” said David Lenze, an economist with the U.S. Department of Commerce, in a phone interview.
The decline in Oklahoma’s manufacturing sector was almost the same as it was in the mining sector, Lenze noted.
“Nationally, finance was a big drag on the economy, and also construction,” he said. “Those declined in Oklahoma, but not nearly as much.”
Places such as New York and Connecticut, with major concentrations in finance, saw their personal income pulled down by that industry.
Some sectors in Oklahoma experienced increases, including farming and government, which helped offset declines in other areas, Lenze said.
Retiree benefits were a major source of strength for the nation’s personal income during the quarter as retirees receiving Social Security payments landed a 5.8 percent cost-of-living adjustment.
“Things would have been much worse without that boost in income to retirees,” Lenze said.
By LAURIE WINSLOW World Staff Writer
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Reader comments for this story have been moved to the most updated version of the story, now under the headline "
Personal income in state drops slightly
," which was published on 6/19/2009. So far, 2 comments have been made.
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