Montana personal income growth sixth in U.S.
By SARAH COOKE - Associated Press Writer - 09/29/05
Compared to the April-June period last year, Montana income rose 7.5 percent, compared to the national average of 6.2 percent, the agency said.
‘‘Montana continues to outperform the nation,'' said Paul Polzin, director of the Montana Bureau of Business and Economic Research in Missoula. ‘‘Over the last year, strong commodity prices combined with the oil boom in eastern Montana have led to relatively rapid economic performance.''
The BEA report said total income in Montana increased from $26.8 billion to $27.3 billion between the first two quarters of this year, growth of 1.9 percent. Nevada's growth at 2.6 percent led the nation, followed by North Dakota, Wyoming, Washington and Arizona.
The national average was 1.5 percent, a marked improvement from the 0.6 percent income growth reported in the first quarter, the report stated.
While concern is growing over the economic impacts of Hurricane Rita and Hurricane Katrina, Polzin said that in Montana their effects will likely be limited to higher energy costs for businesses and the diversion of federal money to help with rebuilding. ‘‘Katrina will impact the national more than the state economy,'' he said.
The 1.9 percent increase in income in the second quarter outdid Montana's showing at this time last year. In the third quarter of 2004, the BEA reported total income in Montana rose by 1.7 percent, the second-highest rate in the country.
Polzin said the BEA report meshes with forecasts predicting Montana's economy will remain stable, barring some kind of economic catastrophe such as a terrorist attack or plummeting oil prices.
Job growth in 2006 is projected to continue at 3.4 percent, primarily because of strength in the eastern Montana oil industry, Polzin said.
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