Real Personal Consumption Expenditures and Personal Income by State, 2020

Today, nan U.S Bureau of Economic Analysis (BEA) released charismatic statistic of existent authorities individual depletion expenditures (PCE) for nan first time. The caller statistic screen nan play from 2008 to 2020. Real PCE decreased 3.8 percent successful 2020 for nan federation aft expanding 2.2 percent successful 2019. Across states, nan percent alteration ranged from 2.2 percent successful Utah to –7.0 percent successful Hawaii, Maryland, and New York; nan percent alteration was –8.9 percent successful nan District of Columbia (table 1).

In 2020, existent PCE decreased successful 47 states and nan District of Columbia and accrued successful only 3 states: Utah (2.2 percent), Idaho (2.0 percent), and Montana (1.0 percent). Real authorities PCE is simply a state's current-dollar PCE adjusted by nan state's location value parity and nan nationalist PCE value index.

• In Utah, Idaho, and Montana current-dollar PCE accrued while their implicit location value deflators decreased 1.0 percent, 0.7 percent, and 0.6 percent respectively (table2).
• New York, Maryland, and Hawaii had nan largest alteration successful existent PCE. In each 3 states, current-dollar PCE decreased while their implicit location value deflators accrued 1.9 percent, 2.8 percent, and 1.8 percent respectively.

Real Personal Income

Real authorities individual income accrued 5.3 percent successful 2020 for nan federation aft expanding 2.6 percent successful 2019. Across states, nan percent alteration successful existent individual income ranged from 9.8 percent successful Idaho to 1.6 percent successful Alaska (table 1).

In 2020, existent individual income accrued successful each 50 states and nan District of Columbia.

• Idaho (9.8 percent) and Utah (9.0 percent) had nan largest increases successful existent individual income. In some states, nan implicit location value deflator decreased.
• Alaska (1.6 percent) and Oklahoma had nan smallest increases successful existent individual income. Their implicit location value deflators accrued 1.0 percent and 2.2 percent respectively.

Regional Price Parities

Regional value parities (RPPs) measurement nan differences successful value levels crossed states for a fixed twelvemonth and are expressed arsenic a percent of nan wide nationalist value level.

The each items RPP covers each depletion equipment and services including lodging rents. Areas pinch high/low RPPs typically correspond to areas pinch high/low value levels for rents.

• States pinch nan highest RPPs were Hawaii (112.0), New Jersey (111.2), and California (110.4); nan RPP successful nan District of Columbia was 111.5 (table 2).
• States pinch nan lowest RPPs were Mississippi (87.8), West Virginia (88.0), and Arkansas (89.2).
• Across states, California had nan highest RPP for lodging rents (160.2) and Mississippi had nan lowest (56.1); nan RPP for lodging rents successful nan District of Columbia was 168.9.

Next release: December 15, 2022
Real Personal Consumption Expenditures by State and Real Personal Income by State and Metropolitan Area, 2021

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Technical Notes connected Regional Price Parities and Implicit Regional Price Deflators

Price indexes commonly measurement value changes complete time. The BEA PCE value scale and nan Bureau of Labor Statistics Consumer Price Index (CPI) are 2 examples. Spatial value indexes measurement value level differences crossed regions for 1 period. An illustration of these types of indexes are purchasing powerfulness parities, which measurement differences successful value levels crossed countries for a fixed play and tin beryllium utilized to person estimates of per capita gross home merchandise into comparable levels successful a communal currency. The RPP BEA has developed compares regions wrong nan United States, without nan request for rate conversion. An implicit location value deflator (IRPD) tin beryllium derived by combining nan RPPs and nan U.S. PCE value index.

Regional value parities. The RPPs are calculated utilizing value quotes for a wide array of items from nan CPI covering apparel, education, food, housing, medical, recreation, transportation, and different equipment and services.1 Data connected lodging rents are obtained separately from nan Census Bureau American Community Survey (ACS). The expenditure weights for each class are constructed utilizing BEA PCE and Census ACS lodging rents expenditures.2

The CPI value levels and nan ACS lodging rents are mixed pinch nan expenditure weights utilizing a multilateral aggregation method that expresses a region's value level comparative to that of nan United States.3

For example, if nan RPP for area A is 120 and for area B is 90, past connected average, value levels are 20 percent higher and 10 percent little than nan U.S. mean for A and B, respectively. If nan individual income for area A is $12,000 and for area B is $9,000, past RPP-adjusted incomes are $10,000 (or $12,000/1.20) and $10,000 (or $9,000/0.90), respectively. In different words, nan purchasing powerfulness of nan 2 incomes is balanced erstwhile adjusted by their respective RPPs.

For a summary of changes to RPP estimation methods, spot Regional Price Parity Methodology Revisions.

Implicit location value deflator. The IRPD is simply a location value scale derived arsenic nan merchandise of 2 terms—the location value parity and nan U.S. PCE value index.

The IRPD will adjacent current-dollar PCE divided by existent PCE successful changeless dollars. The maturation complaint aliases year-to-year alteration successful nan IRPDs is simply a measurement of location inflation.4

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1 The BEA RPP statistic are based successful portion connected restricted entree CPI information from nan Bureau of Labor Statistics (BLS). The BEA statistic presented herein are products of BEA and not BLS.

2 To estimate RPPs, yearly mean CPI value quotes and ACS lodging rents are value adjusted. The rents information are from nan ACS Public Use Microdata Sample, and results incorporated BEA's caller method for estimating lodging services crossed nan location and nationalist accounts (for much information, spot nan May 2021 rumor of nan Survey of Current Business).

3 The multilateral strategy that is utilized is nan Geary additive method. Any region aliases operation of regions whitethorn beryllium utilized arsenic nan guidelines aliases reference region without nonaccomplishment of consistency.

4 The maturation complaint of nan IRPDs will not needfully adjacent nan region aliases metropolitan area value deflators published by BLS. This is because nan CPI deflators are calculated directly, while nan IRPDs are indirect estimates based connected CPI and ACS value levels and PCE expenditure weights.