Sept. 28, 2005--Strong earnings in real estate, professional services, and other entrepreneurial sectors helped jumpstart personal income growth from a lagging pace earlier this year, the U.S. Department of Commerce reported Wednesday.
Nationwide, personal income grew 1.5% in the second quarter, up from 0.6% in the previous quarter and a return to the more robust average rate of the last six quarters, figures from the Bureau of Economic Analysis showed.
The accelerated rate was shared by nearly every state, with Texas, Louisiana, and North Carolina remaining flat. Only four states -- Idaho, New Mexico, Arkansas and South Dakota -- dropped below first quarter rates. But even here, personal income, which the agency defines as income received by all persons from all sources, stayed ahead of inflation.
Nationally, earnings grew 1.6%, with real estate posting the fastest growth of all industries at 7.1%. In the real estate sector alone, proprietor income, including agent and broker fees, jumped 11.6%, compared to gains of 2.7% in wages and salaries. Also up were mining earnings by 5.2%, putting Wyoming and Oklahoma among the top ten states for income growth.
A decline in the number of active reservists dragged military earnings down 1.7% after peaking earlier in the year. The private educational services sector was also a weak earner, falling 0.2% from the previous quarter.