You have reached your limit of free articles this month.

Enjoy unlimited access to SpringfieldNewsSun.com

Starting at just 99¢ for 8 weeks.

GREAT REASONS TO SUBSCRIBE TODAY!

  • IN-DEPTH REPORTING
  • INTERACTIVE STORYTELLING
  • NEW TOPICS & COVERAGE
  • ePAPER
X

You have read of premium articles.

Get unlimited access to all of our breaking news, in-depth coverage and interactive features. Starting at just 99c for 8 weeks.

X

Welcome to SpringfieldNewsSun.com

Your source for Clark and Champaign counties’ hometown news. All readers have free access to a limited number of stories every month.

If you are a News-Sun subscriber, please take a moment to login for unlimited access.

Personal income on rise across state, region


Ohio residents have increased the amount of money they put in their pockets the last few years.

New federal data shows that personal incomes in Ohio grew at a slightly faster rate than the national average in 2012, indicating an uptick in consumer spending and the demand for goods and services that drives job growth.

Total income in Ohio from wages, investments and other sources rose by 3.6 percent from 2011 to $40,057 per capita in 2012, according to the most recent data released Thursday by the Bureau of Economic Analysis. The average U.S. personal income grew by 3.4 percent from 2011 to $43,735 per capita in 2012.

The federal data indicates the third year of consecutive growth in per capita personal incomes for Ohio.

Thomas Traynor, a Wright State University economics professor, said the data shows continued growth at a slightly slower rate than prior years, but it indicates that the area economy is continuing to recover from the recession.

“It is certainly better than the previous decade,” Traynor said.

Traynor said per capita income from about 1999 to about 2008 was typically below the national average.

Per capita personal income is the total amount of income earned by a state’s residents divided by the state’s population. Ohio’s 11.5 million residents received $462.4 billion in personal income in 2012.

James Brock, a Miami University economics professor, said per capita personal income is an important economic indicator. “It gives you an idea of how well off or not so well off people are in a very aggregate, general way,” he said.

Southwest Ohio’s metropolitan areas all saw growth in per capita personal income in 2012. However, only the Cincinnati region surpassed the U.S. metro area average of 3.3 percent growth from 2011 to 2012.

Personal incomes in the Dayton region increased 2.98 percent from 2011 to $39,891 per capita in 2012. The region ranked 163rd out of 382 metro areas for per capita income.

The Springfield region saw 2.7 percent growth over the same period to $36,572 in 2012, ranking the area 239th for per capita income.

Personal incomes in the Cincinnati region rose 4.11 percent over that period to $43,454 in 2012, ranking the area 87th in the nation for per capita income.

The positive income trends, combined with recent area employment and unemployment figures, indicates that southwest Ohio’s economy is improving, Brock said.

“If unemployment falls and more people are working, then you would expect more people to be earning income, and you would expect income measures — say, per capita — to reflect that in a positive way,” he said.

The Dayton, Springfield and Cincinnati metro areas all have enjoyed three consecutive years of growth in per capita personal incomes. However, those growth rates slowed significantly from 2011 to 2012, compared to the 2010 to 2011 period.

Personal income typically sees rapid growth at the end of a recession, with a “large relative increase” after the economy has reached the bottom of its decline, Brock said. However, maintaining that same percentage rate of growth becomes more difficult as the economy improves, he said.

The slowing growth rate means “you are not having some crazy bubble take off that’s not sustainable,” Brock said. “It says to me that you are really building a solid foundation for the next few years.”

The Bureau of Economic Analysis’ first-ever comparison of inflation-adjusted incomes across states and metropolitan areas in intended to benefit people and businesses who are looking to relocate to another part of the country, said Thomas Dail, a bureau spokesman.

For example, a person can compare personal income rates to better understand how their salary may be affected by a job change or move. In addition, businesses now have a comprehensive and consistent measure of differences in the cost of living and the purchasing power of consumers nationwide, Dail said.


Reader Comments ...


Next Up in News

5 things to know about Meijer home delivery
5 things to know about Meijer home delivery

Meijer’s home delivery starts today in the Miami Valley, allowing customers to shop for more than 55,000 items online. The service will cover 2,100 square miles including Miamisburg, Middletown, Lebanon, Huber Heights, Englewood, Springfield and Troy, acccording to the company. That’s more than 415,000 houses that can be serviced by Meijer&rsquo...
Clark County Common Pleas Court cases
Clark County Common Pleas Court cases

COMMON PLEAS COURT NEW SUITS 17-CV-0227 - National Collegiate Student Loan Trust 2005-3 v. Leeann N. Demers aka Leeann N. Evans, 5871 South Dr., and Kevin L. Evans, 1600 Groop Road, complaint for $54,633. 17-CV-0228 - Geico Casualty Company v. Brian Lee, South Charleston, complaint for $46,500 for damages and injuries suffered by plaintiff’s...
Booted from a Delta flight? You could get $10,000 as payment
Booted from a Delta flight? You could get $10,000 as payment

Delta is now letting employees offer customers almost $10,000 in compensation if passengers give up their seats on overbooked flights. The decision comes after a disastrous month for United Airlines when a passenger was dragged off of an overbooked flight. The passenger, David Dao, was left bloodied and injured after being forcibly removed. Several...
Discovery of suspicious item in Oklahoma cemetery leads to laughs
Discovery of suspicious item in Oklahoma cemetery leads to laughs

Police in Collinsville got quite the laugh after an officer identified the true nature of what they first believed was a drug drop.  When a local tree service was removing trees at a Collinsville cemetery for a road widening project, crews say they found what looked like a drug drop. >> Read more trending news They say they found a tube...
Man accused of chopping down utility pole
Man accused of chopping down utility pole

A Kentucky man is facing charges after deputies said he chopped down a utility pole near his Graves County home with plans to sell the pole’s transformer back to the power company, according to multiple reports. Authorities arrested Jared Hayes, 40, Tuesday on charges of first-degree criminal mischief and theft by unlawful taking, according to...
More Stories