State personal income growth accelerated to 0.8 percent in the first quarter of 2012, from 0.4 percent in the fourth quarter of 2011, according to estimates released today by the U.S. Bureau of Economic Analysis. Personal income rose in 47 of the 50 states, fell in Kansas and Mississippi, and was unchanged in Oklahoma. The percent change across states ranged from 2.3 percent in North Dakota to –0.3 percent in Mississippi. Inflation, as measured by the national price index for personal consumption expenditures, increased to 0.6 percent in the first quarter of 2012 from 0.3 percent in the fourth quarter of 2011.

Earnings by industry. Overall, earnings grew 0.8 percent in the first-quarter of 2012, after growing 0.5 percent in the fourth quarter. Earnings increased in 16 of the 24 industries for which BEA prepares quarterly estimates, with the largest percentage increases in the accommodations industry (which grew 2.5 percent, up from 1.2 percent in the previous quarter) and the construction industry (which grew 2.1 percent, up from 1.0 percent). The largest contributions to earnings growth were in health care (which increased $17.3 billion in the first quarter of 2012, up from a $6.8 billion increase in the fourth quarter) and professional services (which increased $16.5 billion, up from $7.1 billion).

In Nevada, the 1.4 percent earnings growth in the accommodations industry, the largest industry in the state, accounted for more than half of all earnings growth in the first quarter of 2012. (Accommodations earnings had fallen 0.5 percent in the fourth quarter in Nevada.)

In Texas, Iowa, Utah, Nebraska, West Virginia, and North Dakota construction earnings grew 4.0 percent or more in the first quarter of 2012, substantially above the national average. Construction earnings have grown continuously but slowly for five consecutive quarters nationally.

First-quarter earnings declined in 8 industries with the largest percentage decline, 6.4 percent, and largest dollar decline, $10.4 billion, in the real estate industry (real estate earnings fell 0.2 percent or $0.4 billion in the fourth quarter). Earnings have also declined for two consecutive quarters in the information industry and for three consecutive quarters in the utilities industry.

The decline in real estate earnings occurred in all states, the decline in information earnings occurred in all states except Washington and North Dakota, and the decline in utilities earnings occurred in 43 states.