Personal income is up in U.S but down in Hawaii

About $2 billion in personal income in Hawaii disappeared in the third quarter compared with the same period in 2008. Hawaii’s personal income totaled $52.26 billion in the third quarter of 2009 compared to $54.3 billion in the third quarter of 2008.

Personal income in Hawaii also dropped slightly – 0.1 percent, from $52.54 billion – from the second quarter to the third quarter of 2009, according to estimates published by the U.S. Bureau of Economic Analysis.

Declines in state and local government employment and spending resulted in Hawaii having one of the lowest earnings growth rates in the nation. Personal income was up in 19 states in the third quarter, growing by 0.3 percent in the third quarter of 2009, continuing the upward trend from the second quarter, which had a 0.8 percent increase in personal income.

Meanwhile, inflation rose 0.7 percent in the third quarter after rising 0.3 percent in the second quarter, as measured by the national price index for personal consumption expenditures, That meant the prices for goods and services was about the same or more than the personal income growths in every state except Alaska, which had the largest personal income growth at 0.8 percent. Louisiana saw the largest decline in personal income with 0.4 percent.