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WEDNESDAY June 12, 2013

BEA INTRODUCES NEW MEASURES OF
THE REGIONAL ECONOMY
Prototype Estimates of Real Personal Income for States
and Metropolitan Areas, 2007-2011
Today, the U.S. Bureau of Economic Analysis released experimental real, or inflation-adjusted,
estimates of personal income for states and metropolitan areas. The inflation-adjustments are based in part on
regional price parities (RPPs) which provide a measure of differences in price levels across each state and region
relative to the national price level for each of the years, 2007-2011. When RPPs are applied in conjunction with
BEA’s national Personal Consumption Expenditures (PCE) price index, which measures price changes over
time, personal income comparisons can be made across regions and time periods. These prototype statistics are
being released for evaluation and comment by data users.

Growth in real state personal income from 2010 to 2011 ranged from 1.3% in Mississippi to 10.4% in
South Dakota. These growth rates reflect the year-over-year change in the state’s nominal personal income, the
change in the national PCE price index, and the change in the regional price parity for that state. After South
Dakota, the states with the largest growth rates of real personal income are North Dakota (9.5%), Iowa (6.1%),
Nebraska (6.0%), and Texas (4.3%). The states with smallest growth rates after Mississippi are Maine (1.4%),
Rhode Island (1.5%), Vermont (1.6%), and New Mexico (1.6%). Four states – Arizona, Indiana, North Carolina,
and Oregon – had growth rates equal to the national average of 2.7%.

BEA data—including GDP, personal income, the balance of payments, foreign direct investment, the input-output accounts,
and economic data for states, local areas, and industries—are available on the BEA Web site: www.bea.gov. E-mail alerts
are also available.
NOTE: The next release of Real Personal Income for States and Metropolitan Areas will be in June 2014.
Media Contact:
Jeannine Aversa
Technical Contact: Troy Martin

(202) 606-2649
(202) 606-5620

Bureau of Economic Analysis, U.S. Department of Commerce