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THURSDAY April 24, 2014

BEA INTRODUCES NEW MEASURES OF
THE REGIONAL ECONOMY
Estimates of Real Personal Income for States and
Metropolitan Areas, 2008-2012
Today, the U.S. Bureau of Economic Analysis released real, price-adjusted estimates of personal
income for states and metropolitan areas for 2008-2012. The price-adjustments are based on regional price
parities (RPPs) and on BEA’s national Personal Consumption Expenditure (PCE) price index. The RPPs
measure geographic differences in the price levels of consumption goods and services relative to the national
average, and the PCE price index measures national price changes over time. Using the RPPs in combination
with the PCE price index allows for comparisons of the purchasing power of personal income across regions
and over time. These estimates are being released for the first time as official statistics1.

Growth in real state personal income from 2011 to 2012 ranged from a decline of 1.2% in South Dakota to
an increase of 15.1% in North 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 North Dakota, the states with the largest growth rates were Montana (3.7%), Indiana (3.7%),
California (3.4%), and Mississippi (3.4%). South Dakota was the only state with a decline in real personal income.
The states with the smallest growth rates were Maine (0.3%), Alaska (0.7%), and Alabama (0.8%). The District of
Columbia’s growth rate was 0.4%. States with growth rates close to the national average were Delaware (2.4%),
Georgia (2.2%), Illinois (2.4%), Minnesota (2.2%), and Oregon (2.4%).
1

Prototype statistics were released for evaluation and comment by users on June 12, 2013.

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 April 2015.
Media Contact:
Jeannine Aversa
Technical Contact: Eric Figueroa

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

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