Maine’s total personal income grew at a sluggish 0.7 percent between the first and second quarters of 2016, slower than all but five other states, according to new estimates from the federal Bureau of Economic Analysis.
Nationally, personal income grew in every state, with an average increase of 1 percent over income levels for the first quarter of 2016.
The recent slowdown in Maine marks a departure from other recent BEA income estimates for the state. From the beginning of 2015 until the first quarter of 2016, the agency’s estimates for Maine’s personal income growth matched or slightly exceeded the national average. Cumulatively, between the second quarter of 2015 and the second quarter of 2016, Maine’s personal income grew about 3.3 percent, just ahead of the national average growth rate of 3.2 percent.
As in the past, growing government payments from Social Security, Medicare and welfare programs constitute a large portion of Mainers’ income growth.
In dollar terms, Mainers took home $416 million more in the second quarter of 2016 than in the first quarter. Of that increase, $242 million came from higher earnings from work and business, $75 million came from increases in investment dividends, interest and rental income, and $99 million came from increases to government transfer receipts, such as Social Security benefits and welfare payments.
By sector, Maine’s health care and social assistance industries contributed to $71 million in earnings growth for the period, while the construction industry saw a $85 million reduction.
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