The Bureau of Economic Analysis released state personal income for 2011 today. The rankings show an improvement in Michigan’s economic performance. In 2011, Michigan personal income grew 5.2 percent, the 16th fastest rate of growth among states and Washington D.C. This growth rate was slightly ahead of the U.S. average growth of 5.1 percent.
Michigan continues to lag in population growth. Michigan’s population was essentially unchanged in 2011, while U.S. population grew 0.7 percent. Michigan ranked 50th in population growth in 2011, beating only Rhode Island, which saw a 0.1 percent decline.
Michigan’s solid income growth coupled with poor population growth, led to Michigan’s per capita income growth ranking 5th among the states in 2011. Per capita income grew 5.2 percent in 2011, while the U.S. average was 4.3 percent.
In 2001, Michigan had the 21st highest per capita income among the 50 states and Washington D.C. By 2009, Michigan’s per capita income had fallen to 41st highest, putting Michigan in the bottom 10 states. Since then Michigan’s ranking has been improving. In 2010, Michigan moved to 40th highest, and with Michigan’s strong per capita growth in 2011, Michigan now ranks 37th highest.
Michigan clearly has a long way to go to recover from its long downturn. However, the recent strength in personal income growth is certainly good news.