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Posted: 1:24 p.m. Tuesday, Nov. 27, 2012
By Randy Tucker
Personal income rose last year in the Cincinnati metro area, a healthy sign that mirrored income growth in metropolitan areas across the country, the U.S. Bureau of Economic Analysis reported Monday.
In the Cincinnati area, income for all people from all sources — including wages, investments, even welfare and unemployment benefits — rose by 4.6 percent in 2011 to $40,918 per capita, according to the report.
Nationwide, personal income grew on average 5.2 percent across more than 300 metro areas, which accounted for 87 percent of the nation’s total personal income last year, the bureau said.
Across the country, personal incomes ranged from a high of $78,504 per capita in the Bridgeport, Conn., area to $21,620 in the McAllen, Texas, metro.
The growth in personal income, which was up last year 4.4 percent nationwide to $41,560 per capita, means many Americans have seen their buying power strengthen along with their incomes, said James Brock, a Miami University economics professor.
“You’re seeing upturns in lots of different measures of economic health, and you’re seeing the growth in personal incomes reflected in strong holiday sales,” said Brock, referring to the record-breaking Thanksgiving weekend in which holiday sales topped an estimated $52 billion.
Underscoring the increase, personal incomes were up despite a sharp decline in the growth of government social benefits payments, including Social Security, Medicare, and unemployment insurance.
Annual growth in government payments across all metro areas slowed to 1.5 percent in 2011, down from 7.1 percent in 2010, according to the bureau’s report. Meanwhile, earnings grew 5.5 percent, and income from investments — including dividends, interest, and rent — grew 7.6 percent for all metros in 2011.
“This seems to corroborate the recovery of the economy, especially in the private sector, since it’s private sector income that’s grown more than government payments have grown,” Brock said.
Still, experts caution that the personal income figure shouldn’t be confused with real weekly and hourly wages, which factor in the rising costs of food, fuel and other commodities.
Real average hourly earnings for all employees fell 0.2 percent from September to October on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported early this month.
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