Minnesota’s Personal Income grew minimally over the past quarter, with it’s dismal growth ranking 41st out of 50 states according to new data released by the Bureau of Economic Analysis.
The data shows that Minnesotans’ personal income growth from the fourth quarter of the 2015 fiscal year to the first quarter of the 2016 year grew by just 0.6 percent. This is the 41st worst performance in the nation, which on the whole saw a full percent growth across the country. Wisconsin was the only state bordering Minnesota to outperform it with a 0.9 percent increase in personal income which ranked 27th. In contrast, North Dakota saw a 1.3 percent decrease in personal income, the worst performance in the nation over the past quarter.
Personal income is all of the income received from all persons in a state from all sources. This includes wages and salaries, rental income, and other sources such as stock earnings. All of this is calculated before taxes.
Minnesota’s first quarter growth from 2015 to 2016 also ranked 41st out of all 50 states. While the United States’ personal income levels as a whole grew 4.4 percent, Minnesota’s grew at a clip of only 2.8 percent, from $275.4 billion, to $283.1 billion.
Neighboring state North Dakota’s 2.8 percent decrease in incomes, dead last again, made it Minnesota’s only neighbor who performed worse in comparison. Iowa and South Dakota saw 3.2 percent increases, while Wisconsin matched the national average of 4.4 percent and finished 25th best in the nation over the past year. Wisconsin not only saw a faster growth rate than Minnesota, but more total growth as well. While Minnesota added $7.8 billion of personal income over the past year, Wisconsin added more than $11.5 billion.
Of the 24 industries which the U.S. Department of Commerce prepares quarterly estimates, only farm and mining earnings decreased over the past quarter.
Farm earnings declined 3.5 percent in 2016’s first quarter, coming off a 9.2 percent fall in the last quarter of 2015. The BEA identified this as “the leading contributor to below average income growth in the Plains region,” which includes Minnesota’s weak showing.
Mining earnings declined 4.4 percent, marking five consecutive quarters of decline in this industry.