Local personal income grows 7.7 percent

Wednesday, August 08, 2007

By WAYNE SMITH

Times Business Editor wayne.smith@htimes.com

Huntsville metro area outpaces U.S. average

Brian Hilson says Huntsville's economic growth is going according to plan. An economic report released Tuesday is a good indication.

Personal income in the Huntsville Metropolitan Area grew by 7.7 percent last year, topping the U.S. average, according to estimates issued Tuesday by the U.S. Bureau of Economic Analysis.

Personal income grew 6.6 percent in the metropolitan portion of the U.S. in 2006, up from 5.3 percent in 2005. Personal income growth accelerated in 252 of the nation's 363 Metropolitan Statistical Areas.

In the Huntsville Metropolitan Area, which includes Madison and Limestone counties, personal income grew 7.7 percent, up from 7.4 percent in 2005.

"We often refer to statistical analysis like this as an income evaluator and we reconcile that against the cost of living, which is 91 percent of the national average," said Hilson, the president and CEO of the Huntsville/Madison County Chamber of Commerce.

"The average result of those two figures certainly weigh in our favor."

Hilson said that when efforts are made to recruit companies to Huntsville, a key focus is not only on the number of jobs but on the types of jobs. "We target jobs and income levels for those positions," he said. "We continue to not only see employment growth, but growth in industries that are yielding high-paying jobs."

Per capita personal income in the Huntsville MSA was $35,196 in 2006, placing it 104th among metropolitan statistical areas. Only the Birmingham-Hoover area was higher in Alabama, ranking 65th at $37,635.

Per capita personal income in the Huntsville MSA grew by 5.4 percent, down slightly from 5.6 percent in 2005.

Nationally, the bureau said that faster growth was spurred by the property income and compensation components of personal income. Compensation growth in most private industries, including durable goods manufacturing and professional services, accelerated, while compensation growth at all levels of government, especially the military, slowed.

Some of the largest accelerations in personal income were in the Gulf Coast MSAs - New Orleans, Lake Charles, Houma, and Lafayette, La.; Gulfport and Hattiesburg, Miss.; and Mobile, all recovering from Hurricane Katrina

The biggest slowdowns in personal income growth were in MSAs with large Army and Marine bases - Jacksonville and Fayetteville, N.C.; Clarksville, Tenn.; Hinesville and Columbus, Ga.; and Killeen, Texas. All of those had large personal income increases in 2005. Military compensation at the bases in these MSAs had grown at double-digit rates from 2003 to 2005 because of the Iraq and Afghanistan wars but slowed to single-digit growth (Hinesville saw a decline) last year.



Local personal income grows 7.7 percent Wednesday, August 08, 2007 By WAYNE SMITH Times Business Editor wayne.smith@htimes.com Huntsville metro area outpaces U.S. average Brian Hilson says Huntsville's economic growth is going according to plan. An economic report released Tuesday is a good indication. Personal income in the Huntsville Metropolitan Area grew by 7.7 percent last year, topping the U.S. average, according to estimates issued Tuesday by the U.S. Bureau of Economic Analysis. Personal income grew 6.6 percent in the metropolitan portion of the U.S. in 2006, up from 5.3 percent in 2005. Personal income growth accelerated in 252 of the nation's 363 Metropolitan Statistical Areas. In the Huntsville Metropolitan Area, which includes Madison and Limestone counties, personal income grew 7.7 percent, up from 7.4 percent in 2005. "We often refer to statistical analysis like this as an income evaluator and we reconcile that against the cost of living, which is 91 percent of the national average," said Hilson, the president and CEO of the Huntsville/Madison County Chamber of Commerce. "The average result of those two figures certainly weigh in our favor." Hilson said that when efforts are made to recruit companies to Huntsville, a key focus is not only on the number of jobs but on the types of jobs. "We target jobs and income levels for those positions," he said. "We continue to not only see employment growth, but growth in industries that are yielding high-paying jobs." Per capita personal income in the Huntsville MSA was $35,196 in 2006, placing it 104th among metropolitan statistical areas. Only the Birmingham-Hoover area was higher in Alabama, ranking 65th at $37,635. Per capita personal income in the Huntsville MSA grew by 5.4 percent, down slightly from 5.6 percent in 2005. Nationally, the bureau said that faster growth was spurred by the property income and compensation components of personal income. Compensation growth in most private industries, including durable goods manufacturing and professional services, accelerated, while compensation growth at all levels of government, especially the military, slowed. Some of the largest accelerations in personal income were in the Gulf Coast MSAs - New Orleans, Lake Charles, Houma, and Lafayette, La.; Gulfport and Hattiesburg, Miss.; and Mobile, all recovering from Hurricane Katrina The biggest slowdowns in personal income growth were in MSAs with large Army and Marine bases - Jacksonville and Fayetteville, N.C.; Clarksville, Tenn.; Hinesville and Columbus, Ga.; and Killeen, Texas. All of those had large personal income increases in 2005. Military compensation at the bases in these MSAs had grown at double-digit rates from 2003 to 2005 because of the Iraq and Afghanistan wars but slowed to single-digit growth (Hinesville saw a decline) last year. © 2007 The Huntsville Times © 2007 al.com All Rights Reserved.