Personal income rose in Colorado during the first quarter, driven in part by gains in construction and manufacturing and a sharp jump in farm incomes, according to a report Wednesday from the U.S. Bureau of Economic Analysis.
Colorado personal income increased 0.9 percent in the first quarter from the fourth quarter. Measured on an annualized rate, personal income was $230 billion, up from $228 billion in the fourth quarter.
“It is dollars in people’s bank accounts that pays down debts, that pays bills,” said Gary Horvath, a Broomfield-based economist.
Colorado’s personal income, which grew faster than the 0.8 percent national pace, ranked 17th among states during the first quarter.
On a per-capita basis, the gains in income are smaller due to the state’s relatively high rate of population growth. In other words, the growth in income is shared by more people.
Personal income represents the money individuals receive from a variety of sources, including employment; individual business income; dividends, rents and interest; and government payments.
Income in the state fell sharply during the recession but has grown consistently since the third quarter of 2009. The growth rate, however, has slowed in recent quarters from a high of 1.76 percent a year ago.
Personal income rose in all but three states during the first quarter.
In Colorado, farm income reported the biggest jump of any category, rising 14.4 percent during the quarter. But that source of income is only a small part of the mix and, like the weather, volatile.
Among the sectors and industries paying out more in wages and salaries were holding companies, up 3.4 percent; construction, up 2.7 percent; and manufacturing, up 2.4 percent.
Hospitality, health care and entertainment were other sectors in which incomes rose.
“A lot of the growth in personal income is in line with changes in employment, which is what you would expect,” Horvath said.
Among the industries with the biggest declines in wages and salaries were information, down 3.4 percent; utilities, down 2.8 percent; and real estate, rental and leasing, down 1.3 percent.
Dividends, interest and rent rose 1.7 percent during the quarter, which Horvath said may reflect rising royalty payments from oil and gas production.
Government transfers to individuals, which include unemployment benefits and other social assistance, rose 0.46 percent.
