Hawaii residents saw their personal incomes rise 1.1 percent in the second quarter of this year, more than erasing a 0.9 percent decline in the previous three-month period, according to a report released today by the U.S. Bureau of Economic Analysis.
Hawaii’s second-quarter increase in personal income was the 11th largest among the 50 states and the District of Columbia. The average increase in personal income nationally was 1 percent in the first quarter, according to the BEA.
Among the three major components of personal income the biggest increase for Hawaii residents was in dividends, interest and rent, which grew by 2.5 percent from the second quarter. Transfer receipts, a category that includes government payments such as Medicare and foot stamps, rose by 1.2 percent. Net earnings, which consists mainly of wages and salaries, increased by 0.8 percent.
The figures are not adjusted for inflation, which erodes the value of personal income. The state Department of Business, Economic Development and Tourism is forecasting that personal income in Hawaii will grow by 4.5 percent in 2013 but by only 2.6 percent after inflation is taken into account.