Iowans' personal income inches up

The personal income of Iowans rose a seasonally adjusted 0.8 percent in the first three months of this year from the fourth quarter of 2011, mirroring the increase in personal income nationally, according to the U.S. Bureau of Economic Analysis report released Wednesday.

The quarterly change was sharply lower than the 3.1 percent recorded in the first quarter of 2011 compared with the final three months of 2010.

The total personal income of Iowans edged up to $126.4 billion in the three months that ended on March 31 from $125.4 billion in the fourth quarter of 2011.

Personal income rose in 47 of the 50 states, fell in Kansas and Mississippi, and was unchanged in Oklahoma, according to the Bureau of Economic Analysis. The percent change across states ranged from 2.3 percent in North Dakota to -0.3 percent in Mississippi.

Inflation, as measured by the national price index for personal consumption expenditures, increased to 0.6 percent in the first quarter of 2012 from 0.3 percent in the fourth quarter of 2011.

In Iowa, Nebraska, North Dakota, Texas, Utah and West Virginia, construction earnings grew 4 percent or more in the first quarter of the year, substantially above the 0.8 percent national average. Construction earnings nationally have grown continuously but slowly for five consecutive quarters.

Construction in Iowa has benefited from flood-related projects in Cedar Rapids and Iowa City. Commercial construction projects like the new Casey's General Store near The Eastern Iowa Airport, a new office building in downtown Cedar Rapids and Kum & Go's expansion into the Cedar Rapids market also have contributed to construction activity.

First-quarter earnings declined in eight industries with the largest percentage decline, 6.4 percent, and largest dollar decline, $10.4 billion, in the real estate industry. Earnings also have fallen for two consecutive quarters in the information industry and for three consecutive quarters in the utility industry.

The largest contributions to earnings growth were in health care (which increased $17.3 billion in the first quarter of 2012, up from a $6.8 billion increase in the fourth quarter) and professional services (which rose $16.5 billion, up from $7.1 billion).