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Personal income growth in Hawaii slowed to a standstill in the third quarter, making it one of 20 states where incomes fell or were unchanged compared with the previous three-month period, a federal agency reported Monday.
Salaries, investment income and federal government payments, such as Social Security, paid to Hawaii residents totaled $59.14 billion at a seasonally adjusted annual rate in the July-through-September quarter, statistically unchanged from the previous quarter, according to a report from the Bureau of Economic Analysis. That followed quarter-over-quarter increases of 0.9 percent in the second quarter and 1.7 percent in the first quarter.
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 personal income in Hawaii to grow by 4.6 percent this year but by only 1.3 percent after inflation is taken into account.
Nationally, personal income grew by an average of 0.1 percent between the third and second quarters, the BEA reported. Washington state topped the list with a 0.6 percent gain, while West Virginia was at the bottom with a 0.4 percent decline.
Of the three categories of personal income, a sharp decrease in Social Security and other federal transfer payments to Hawaii residents offset small increases in salaries and investment income. Federal transfer payments fell in all 50 states by a total of $13.6 billion at an annual rate. In Hawaii, transfer payments were down $73 million at an annual rate in the third quarter from the second quarter. Salaries in Hawaii rose by $66 million at an annual rate, while investment income rose by $16 million at an annual rate.
By industry, the 4.6 percent earnings decline in Hawaii’s information sector was the largest drop in the nation. The biggest earnings increase was in educational services, which rose 3.8 percent.
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