Colo. income growth slows, still outpaces most of nation
Personal income growth slowed in Colorado but remained one of the better rates in the nation in 2008, according to numbers released Tuesday by the U.S. Bureau of Economic Analysis.
The total amount of personal income in Colorado increased 4.93 percent last year, while nationwide personal income growth was 3.9 percent, down from 6 percent in 2007. It was the slowest growth since 2003.
Colorado ranked as the 10th strongest of the 50 states. Other strong states included oil-producers such as Alaska, Wyoming, Oklahoma and Texas, which benefited from oil prices that peaked in the first half of 2008.
Brian Cadena, an assistant professor of economics at the University of Colorado, said the more telling numbers are personal-income-per-capita rates. This is the average personal income residents in each state had. In Colorado, that figure rose from $41,192 in 2007 to $42,377 in 2008, an increase of 2.9 percent.
That meant the rate failed to keep up with a 3.3 percent rate of inflation. That in turn indicates that, in terms of goods and services people can buy, the average income has decreased slightly, Cadena said.
This is a shift from 2006 to 2007 when the personal income per capita grew by 4.0 percent in the state and inflation was 2.6 percent.