Showing posts with label georgia income by industry. Show all posts
Showing posts with label georgia income by industry. Show all posts

Tuesday, June 23, 2020

Georgia personal income up 3.1% in the 1st quarter of 2020; nation rises by 2.3%

Personal income growth, 1st quarter 2020

Personal income in Georgia rose 3.1% at an annual rate in the first quarter of 2020 according to new information released by the U.S. Bureau of Economic Analysis.

The increase equaled the percentage gain in the 4th quarter of 2019 but fell short of the 6.1% gain recorded by the state in the 1st quarter of 2019.

For the U.S., personal income increased 2.3% in the first quarter of 2020, a deceleration from the 3.6% increase recorded in the 4th quarter of 2019.

For the 1st quarter of 2020, personal income in the state totaled $522.194 billion.

Personal income is the income received by, or on behalf of, all persons from all sources: from participation as laborers in production, from owning a home or business, from the ownership of financial assets, and from government and business in the form of transfers. It includes income from domestic sources as well as the rest of world. It does not include realized or unrealized capital gains or losses.

The report contains information for the months of January, February, and March and so comes before the shelter-in-place order given by Governor Kemp, which was effective on April 3. With the order, the state’s economy entered into a much slower period that will be reflected when information for the 2nd quarter is released later this year.

Types of income

BEA classifies personal income by components of net earnings; dividends, interest and rent; and transfer receipts.

Net earnings by place of residence is earnings by place of work less contributions for government social insurance, plus an adjustment to convert earnings by place of work to a place-of-residence basis.

Transfer receipts include items such as social security benefits, state unemployment benefits, and Medicare and Medicaid payments.

Over the first quarter of the year, of the $3.962 billion increase in personal income for the state, net earnings increased by $845 million; dividends, interest and rent added $711 million; and transfer receipts climbed by $2.407 billion.

In Georgia, net earnings contributed 0.7 percentage points towards the state’s 3.1% increase in the first quarter of the year with dividends, interest, and rent accounting for 0.5 percentage points and transfer payments accounting for 1.9 percentage points.

For the U.S., net earnings accounted for 0.2 percentage points of the nation’s 2.3% increase while dividends, interest and rent accounted for 0.5 percentage points, and transfer payments contributing 1.7 percentage points. 

Differences between the sum of the components and the totals shown are due to rounding of data.

Increases by industry

For the state, earnings grew fastest in the finance and insurance industry, up by $616 million followed by construction, which recorded increases of $369 million in the first quarter.

Earnings in the accommodation and food services industry declined by $800 million in the first three months of the year.

The largest percentage increases in earnings occurred in finance and insurance (+0.48%), construction (0.28%), and state and local government (0.27%).

The largest percentage declines were reported in accommodation and food services (-0.62%) and administrative and waste management services (-0.14%).