Personal income in Hawaii grew modestly in the second quarter, but the increase was among the smallest in the nation, according to a federal report released today.

Personal income, which includes wages, interest, dividends, rent and government payments, rose by 0.8 percent during the April-to-June period compared with the previous three months, the Bureau of Economic  Analysyis reported. The increase, which was below the 1 percent national average, ranked 44th nationally.

The state Department of Business, Economic Development and Tourism is forecasting personal income for all of 2010 to rise by 2.5 percent. However, most of that increase will be lost to inflation, which DBEDT estimates will be 2.2 percent this year.