The US Bureau of Economic Analysis released on Tuesday personal income data for the second quarter of 2006 which showed that personal income growth slowed to 1.7 percent following two quarters of 2.2 percent growth.
Personal income growth slowed in all regions of the country, except the Great Lakes region which maintained its 1.8 percent growth rate. Meanwhile, inflation accelerated to 1 percent from an average of 0.6 percent in the previous two quarters, according to the national price index for personal consumption.
The state of Louisiana, which is still dealing with the devastation caused by last year's Hurricane Katrina, grew only 0.8 percent. Nevada, whose population is growing four times faster than the nation's, grew 2.3 percent.
Professional services, finance, health care, and durable goods manufacturing made the largest contributions to U.S. earnings growth in the second quarter, according to the report. The largest contributors were typically goods producing industries: mining in Texas and Wyoming, construction in Florida, Arizona, and Utah, and durable goods manufacturing in Oregon, Washington, and Ohio.
The BEA defined personal income as the total of net earnings by place of residence, rental income of persons, personal dividend income, personal interest income, and personal current transfer receipts.