Gov: Personal Finance OK in Michigan

LANSING, Mich. – Personal income in Michigan last year grew at the strongest rate in more than a decade, providing another substantial indicator of Michigan’s rebounding economy, Gov. Rick Snyder said today.

The state’s personal income growth rate is the strongest since 2000, according to 2011 figures released by the U.S. Bureau of Economic Analysis (BEA). Michigan’s improvement also is the best among the Great Lakes states.

“Michigan’s reinvention continues to gain momentum,” Snyder said. “We have taken aggressive steps to get Michigan’s fiscal house in order and to put families back to work. Strong personal income growth is critical to continuing our effort to boost Michigan’s economy.”

Michigan’s personal income increased 5.2 percent in 2011, which exceeded the U.S. personal income growth rate of 5.1 percent. Total personal income is income received by individuals from all sources, including salaries and wages, interest and dividends. On a per capita basis, Michigan personal income measured $36,533, up from $34,714 in 2010.

The state’s per capita income growth rate of 5.2 percent was faster than the national growth rate of 4.3 percent, reflecting Michigan’s most robust annual growth rate since 2000 when it increased 5.5 percent. Michigan’s per capita growth rate outpaced neighboring Midwestern states.

According to the BEA, 2011 marks only the second time since 1995 that Michigan’s annual growth rate has exceeded the national growth rate. Michigan’s 2011 growth rate ranks 15th best among all states.

The BEA data follows Wednesday’s reported decline in Michigan’s seasonally adjusted unemployment rate. Unemployment dropped to 8.8 percent in February, the state’s seventh consecutive monthly decline and the lowest rate in nearly four years. Michigan’s work force grew by 14,000 in February.