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Oklahoma 1Q personal income unchanged

BY LAURIE WINSLOW laurie.winslow@tulsaworld.com Published: June 27, 2012
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Oklahoma was the only state that saw no change in first-quarter personal income, the U.S. Bureau of Economic Analysis reported Wednesday.

Nationwide, personal income rose in 47 states and fell in Kansas and Mississippi. Oklahoma's personal income — a measure of the income received by all residents from all sources — remained at $144.9 billion.

“The reason that there was no income growth in Oklahoma is because in the fourth quarter there was a large bonus made in the industry we call ‘management of companies,'” said David Lenze, an economist with the U.S. Department of Commerce. “So, that made the growth in the fourth-quarter personal income rather large.

“What you really need to do in the case of Oklahoma this time is look at the growth from the third quarter to the first quarter.”

The management category includes businesses that typically have their headquarters in Oklahoma and additional operations in other locations, Lenze said.

4th-quarter jump

Because bonuses often are paid at the end of the year, a noticeable jump in fourth-quarter earnings occurred in that category, and therefore affected overall personal income for the state.

Whereas earnings for management were nearly $1.5 billion in the third quarter of 2011, it rose to nearly $2.7 billion by the fourth quarter before declining by $936 million in the first quarter.

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