Minn. personal income stalls
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Total personal income in Minnesota barely budged between the first and second quarters of the year.
The key barometer of the state's prosperity climbed just a tenth of a percent over that period, according to data released Monday by the U.S. Commerce Department.
Personal income, which the department defines as the income received by all persons from all sources, reached nearly $257 billion. The growth was much weaker than the national average of 1 percent, which itself was still lackluster.
A 15 percent drop in farm earnings hurt Minnesota’s second quarter income numbers, said Minneapolis Federal Reserve Bank economist Toby Madden. Farmers suffered from a bad spring and lower commodity prices for their goods.
Compensation for government employees in Minnesota was largely flat in the second quarter, with income even dropping for federal government employees, Madden said, adding that the drop was likely tied to the across the board spending cuts known as the sequester.
On a more positive note, wages and salaries for non-farm workers had a decent bump second quarter, rising half a percent, with a notable strength in earnings for employees in real estate, rental and leasing.
The Minneapolis Fed projects continued weak growth in personal income through the end of the year and a stronger rebound in 2014.
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