State Personal Income, 1st quarter 2012-4th quarter 2012 and State Annual Personal Income, 2012 (preliminary estimates)

State Personal Income 2012

WASHINGTON DC, March 27, 2013 – Average state personal income growth slowed to 3.5 percent in 2012 from 5.2 percent in 2011, according to estimates released today by the U.S. Bureau of Economic Analysis. State personal income growth ranged from -0.2 percent in South Dakota to 12.4 percent in North Dakota. Inflation, as measured by the national price index for personal consumption expenditures, fell to 1.8 percent in 2012 from 2.4 percent in 2011.

South Dakota’s small personal income decline was due to the effect of last year’s drought on farm income. The drought also had relatively strong adverse effects in Nebraska, Kansas, and Iowa, all of which had below average total personal income growth in 2012. In contrast, nonfarm personal income growth in each of these states was above average.

For the fifth time in the last six years North Dakota has had the fastest personal income growth of all states. Since 2006, personal income in North Dakota has grown at a compound annual rate of 9.2 percent, substantially outpacing the 2.9 percent growth rate of all other states. In 2012, mining (including oil and gas extraction) and construction accounted for 43 percent of private nonfarm earnings growth in North Dakota.

Fourth quarter personal income.¹ In the fourth quarter of 2012, average state personal income growth accelerated to 1.9 percent from 0.6 percent in the third quarter, the fastest pace since the first quarter of 2011. Fourth-quarter growth ranged from 1.3 percent in West Virginia to 4.8 percent in South Dakota. The inflation rate was 0.4 percent in the fourth quarter of 2012, the same as in the third quarter.

Special or accelerated dividend payments to persons in anticipation of changes in federal individual income tax rates boosted personal dividend income in the fourth quarter. The gain was largest in Washington D.C. where dividend income rose 26 percent and smallest in South Dakota where it grew 12 percent.

Fourth-quarter earnings in the finance industry were also boosted by accelerated bonus payments or other irregular pay in anticipation of tax rate changes. Finance earnings grew 10.5 percent in New York, 7.9 percent in Connecticut, and 6.4 percent in New Jersey, states where the finance industry is particularly prominent. Finance earnings grew 2.7 percent in the other states.

Fourth-quarter wage and salary disbursements in New York and New Jersey were reduced 0.8 percent and 0.7 percent, respectively, to reflect work interruptions caused by Hurricane Sandy not accounted for in the primary source data used for preliminary state-level wage and salary estimates.

Severe heat and drought adversely affected agricultural production in the summer and fall of 2012. In the fourth quarter, the drought reduced farm inventories by $ 25 billion. Crop insurance indemnity payments offset $ 15 billion of the losses. Illinois and Indiana were hardest hit in the fourth quarter with farm income falling 28 percent and 13 percent (respectively).

For additional information, see the Technical Note on Quarterly State Personal Income for the Fourth Quarter of 2012 at www.bea.gov.

Revisions. Estimates for 2012:I to 2012:III have been revised. All of the regional statistics underlying this news release along with mapping and charting software are available at www.bea.gov/regional/.

¹NOTE.— Quarter-to-quarter percent changes are calculated from unrounded data and are not annualized. Quarterly estimates are expressed at seasonally adjusted annual rates, unless otherwise specified. Quarter-to-quarter dollar changes are differences between published estimates.

Definitions

Personal income is the income received by all persons from all sources. Personal income is the sum of net earnings by place of residence, property income, and personal current transfer receipts. Property income is rental income of persons, personal dividend income, and personal interest income. Net earnings is earnings by place of work (the sum of wage and salary disbursements, supplements to wages and salaries, and proprietors’ income) less contributions for government social insurance, plus an adjustment to convert earnings by place of work to a place-of-residence basis. Personal income is measured before the deduction of personal income taxes and other personal taxes and is reported in current dollars (no adjustment is made for price changes).

Per capita personal income is calculated as the total personal income of the residents of a state divided by the population of the state. In computing per capita personal income, BEA uses the Census Bureau’s annual midyear population estimates.

Disposable personal income is personal income less personal current taxes. It is the portion of personal income that is available for spending and saving.

The estimate of personal income in the United States is derived as the sum of the state estimates and the estimate for the District of Columbia; it differs from the estimate of personal income in the national income and product accounts (NIPAs) because of differences in coverage, in the methodologies used to prepare the estimates, and in the timing of the availability of source data.

BEA groups all 50 states and the District of Columbia into eight distinct regions for purposes of data collecting and analyses: New England (Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont); Mideast (Delaware, District of Columbia, Maryland, New Jersey, New York, and Pennsylvania); Great Lakes (Illinois, Indiana, Michigan, Ohio, and Wisconsin); Plains (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, and South Dakota); Southeast (Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee, Virginia, and West Virginia); Southwest (Arizona, New Mexico, Oklahoma, and Texas); Rocky Mountain (Colorado, Idaho, Montana, Utah, and Wyoming); and Far West (Alaska, California, Hawaii, Nevada, Oregon, and Washington).

State personal income statistics provide a framework for analyzing current economic conditions in each state and can serve as a basis for decision making. For example:

• Federal government agencies use the statistics as a basis for allocating funds and determining matching grants to states. The statistics are also used in forecasting models to project energy and water use.


• State governments use the statistics to project tax revenues and the need for public services.


• Academic regional economists use the statistics for applied research.


• Businesses, trade associations, and labor organizations use the statistics for market research.

BEA’s national, international, regional, and industry estimates; the Survey of Current Business; and BEA news releases are available without charge on BEA’s Web site at www.bea.gov. By visiting the site, you can also subscribe to receive free e-mail summaries of BEA releases and announcements.

****

Next state personal income release – June 28, 2012, at 8:30 A.M. for state personal income, first quarter 2013.

U.S. Bureau of Economic Analysis

State Personal Income, 1st quarter 2012-4th quarter 2012 and State Annual Personal Income, 2012 (preliminary estimates)

Summary Estimates for Multinational Companies, 2011

Summary Estimates for Multinational Companies:
Employment, Sales, and Capital Expenditures for 2011

The following are 2011 advance and 2010 revised summary estimates of the employment, capital expenditures, and sales activity of U.S. multinational companies (comprising both their U.S. and foreign operations) and the corresponding activity of foreign multinational companies in the United States. Preliminary 2011 and revised 2010 statistics based on more complete source data and including country and industry detail will be released later this year.¹

U.S. multinational companies: U.S. and foreign operations

Worldwide employment by U.S. multinational companies (MNCs) increased 1.5 percent in 2011 to 34.5 million workers, with the increase primarily reflecting increases abroad. In the United States, employment by U.S. parent companies increased 0.1 percent to 22.9 million workers, compared with a 1.8 percent increase in total private-industry employment in the United States.² The total employment by U.S. parents accounted for roughly one-fifth of total U.S. employment in private industries. Abroad, employment by majority-owned foreign affiliates of U.S. MNCs increased 4.4 percent to 11.7 million workers.

Worldwide capital expenditures by U.S. MNCs increased 16.7 percent in 2011 to $ 706 billion. Capital expenditures in the United States by U.S. parent companies increased 17.1 percent to $ 514 billion. Capital expenditures abroad by their majority-owned foreign affiliates increased 15.4 percent to $ 192 billion. As shown in table 1, capital expenditures have varied widely in recent years.

Sales by U.S. parent companies increased 9.4 percent in 2011 to $ 10,696 billion. Sales by their majority-owned foreign affiliates increased 15.8 percent to $ 5,985 billion.³

Because the growth in employment of U.S. parent companies was not as strong as the growth in employment of majority-owned foreign affiliates, the U.S. parent share of worldwide employment of U.S. MNCs fell nearly 1 percentage point in 2011 to 66 percent (table 2 and chart 1). The U.S.-parent share of worldwide capital expenditures of U.S. MNCs in 2011 was 73 percent, a share that was little changed from 2010.

Changes in the share of MNC activity at the U.S. parent do not necessarily indicate production shifting between U.S. parents and their foreign affiliates. Other factors that may be associated with changes in the share include different rates of economic growth in the United States and in specific markets where investment is occurring abroad, or the creation of new market opportunities abroad that cannot be served by exports from the United States. These issues are discussed in annual articles on U.S. MNC operations in the Survey of Current Business.⁴

¹2010 preliminary statistics with country and industry detail are available on BEA’s Web site.
² Statistics for total U.S private-industry employment are from BEA’s national income and product accounts, table 6.4D: Full-Time and Part-Time Employees by Industry (see http://www.bea.gov/iTable/index_nipa.cfm).
³ An MNC-wide total for sales is not provided because it would contain duplication resulting from transactions among and within MNCs.
⁴ See “U.S. Multinational Companies: Operations of U.S. Parents and Their Foreign Affiliates in 2010” in the November 2012 issue of the Survey. Additional discussion of data and analytical considerations may be found in “A Note on Patterns of Production and Employment by U.S. Multinational Companies,” in the March 2004 issue of the Survey.

Foreign multinational companies: U.S. operations

Employment in the United States by majority-owned U.S. affiliates of foreign MNCs rose 3.3 percent, to 5.6 million workers, in 2011, a rate of increase higher than the 1.8 percent increase in total U.S. private-industry employment in 2011. U.S. affiliates accounted for 5.0 percent of U.S. private-industry employment in 2011, one-tenth of a percentage point higher than in 2010.

Capital expenditures by U.S. affiliates rose 12.3 percent in 2011 to $ 173 billion. Sales by U.S. affiliates rose 11.9 percent in 2011 to $ 3,491 billion.

Changes in the measures of activity of majority-owned U.S. affiliates of foreign companies may reflect a variety of factors, including changes in the operations of existing affiliates as well as entries to and exits from the universe of majority-owned U.S. affiliates.  For example, the increase in employment was due in part to acquisitions made by existing U.S. affiliates and the entry of new majority-owned affiliates.

Revisions

The MNC statistics for 2010 presented in this release supersede preliminary statistics that were released in the second half of 2012. For U.S. parent companies, the levels shown in table 1 for 2010 represent upward revisions of 0.1 percent for employment, 0.2 percent for capital expenditures, and less than 0.1 percent for sales. For majority-owned foreign affiliates, the levels shown represent an upward revision of 0.9 percent for employment, a downward revision of less than 0.1 percent for capital expenditures, and an upward revision of less than 0.1 percent for sales. For majority-owned U.S. affiliates of foreign MNCs, the levels shown in table 3 for 2010 represent upward revisions of 3.1 percent for employment, 3.4 percent for capital expenditures, and 1.1 percent for sales.

* * *

TECHNICAL NOTE

Each year, the Bureau of Economic Analysis releases advance summary statistics of employment, sales, and capital expenditures by U.S. parent companies, by their foreign affiliates, and by U.S. affiliates of foreign MNCs. Statistics based on more complete source data, including country and industry detail, will be released later this year.

The statistics presented in this release were constructed from data collected by BEA in two distinct surveys of MNC operations: (1) a survey of U.S. MNCs that covers the operations of both U.S. parent companies and their foreign affiliates, and (2) a survey of the operations of U.S. affiliates of foreign MNCs.

A U.S. parent company may itself be foreign-owned, so there is some overlap between the data on U.S. parent companies and on U.S. affiliates; thus, to avoid duplication, data on U.S. parents and U.S. affiliates should not be added together to produce U.S. totals.

The statistics presented here pertain to U.S. parent companies and their majority-owned foreign affiliates, and to majority-owned U.S. affiliates of foreign MNCs. Statistics on all U.S. and foreign affiliates, including affiliates that are not majority owned, will be released by BEA later this year. In these series, “affiliates” are defined as businesses in which an investor of another country holds at least 10-percent voting ownership. For 2010, foreign affiliates that were not majority-owned employed 2.2 million workers, and U.S. affiliates that were not majority-owned employed 0.5 million workers.

For both U.S. MNCs and U.S. affiliates of foreign MNCs, employment covers the total number of full-time and part-time employees on the payroll at the end of the year. Sales cover gross sales minus returns, allowances and discounts, or gross operating revenues. Capital expenditures cover total expenditures on property, plant, and equipment (that is, expenditures for land and depreciable structures and equipment); they are gross of any sales, retirements, or transfers of previously owned tangible assets. Capital expenditures include spending for equipment that is leased or rented to others, which in some industries—such as automotive equipment rental and leasing—can be very large. The value of sales, retirements, or transfers in these industries can be very large.

In addition to presenting data collected directly in its surveys of MNC operations, BEA uses data collected on costs incurred and profits earned in production to estimate the value added of U.S. parent companies, of majority-owned foreign affiliates, and of majority-owned U.S. affiliates of foreign companies. Value added, which is not discussed in this release, is an important measure of MNC activity that indicates the contribution of parents or affiliates to gross domestic product in the United States or in foreign host countries. The latest statistics for the value added are for 2010 and are available on BEA’s website at http://www.bea.gov/iTable/index_MNC.cfm.

* * *

U.S. Bureau of Economic Analysis

Summary Estimates for Multinational Companies, 2011

Bank of America profit misses estimates as revenue falls

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The logo of the Bank of America is pictured atop the Bank of America building in downtown Los Angeles November 17, 2011.


Credit: Reuters/Fred Prouser








Wed Apr 17, 2013 7:07am EDT





(Reuters) – Bank of America Corp’s first-quarter profit quadrupled as expenses fell and it set aside less money to cover bad loans.




Net income rose to $ 2.62 billion, or 20 cents per share, from $ 653 million, or 3 cents per share, in the year-earlier quarter, when earnings were affected by a host of one-time items including a $ 4.8 billion charge related to the value of its debt.




(Reporting By Rick Rothacker in Charlotte, North Carolina and Tanya Agrawal in Bangalore; Editing by Supriya Kurane)



Investing and Taxes Simplified




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Reuters: Business News

Bank of America profit misses estimates as revenue falls

Nike profit tops Wall Street estimates, shares rise

Nike shoes are displayed at a Niketown store in Beverly Hills, California, March 16, 2010.

Credit: Reuters/Lucy Nicholson

By Nivedita Bhattacharjee

Thu Mar 21, 2013 5:56pm EDT

(Reuters) – Nike Inc’s (NKE.N) quarterly profit beat Wall Street’s expectations, as margins increased and world-wide future demand for its apparel and shoes rose, sending its shares up 8 percent.

Global orders for Nike-branded shoes and clothing scheduled for delivery from March through July 2013, known as futures orders, rose 6 percent compared to orders reported for the same period last year. In North America, the company’s biggest market, orders increased 11 percent.

The company also saw a turnaround in future demand in Greater China, with orders rising 4 percent, after falling in the previous two quarters.

“They turned China much faster than we thought,” said Brian Yarbrough, consumer discretionary analyst for Edward Jones.

Yarbrough said this turnaround was important as China is among Nike’s highest margin markets. Lower shipping costs and high price tags help the company make more money on their products in that region, he said.

“In China, we are seeing progress against our strategy to reset the marketplace but we still have more to do before we can capture its long-term growth potential,” Nike Chief Executive Mark Parker said on a conference call with analysts.

Nike had been stuck with excess inventory in China and was finding it difficult to tackle intense competition and frequent promotional sales by local brands. Distributors and retailers were also wary of an uncertain global economy.

Shares of the Beaverton, Oregon-based company rose to $ 57.93 Thursday in extended trade. They closed at $ 53.60 on the New York Stock Exchange.

Paul Swinand, an analyst with Morningstar, said one of the biggest challenges for Nike is to grow in its more mature markets. He said strong demand in North America shows it is able to do that.

Nike also posted its first growth in gross margins in around two years, with margins rising 30 basis points in the quarter. High costs of raw material and labor pressured the company’s margins over the past couple of years and Nike had been fighting it by raising prices on merchandise.

“Gross margin benefited from the combination of pricing actions and easing material costs, which more than offset higher labor costs,” the company said.

For the third quarter ended February 28, the company earned $ 662 million, or 73 cents a share, compared with $ 569 million, or 61 cents a share last year. Analysts, on average, expected earnings of 67 cents a share, according to Thomson Reuters I/B/E/S.

Revenue rose 9 percent to $ 6.2 billion.

(Reporting by Nivedita Bhattacharjee in Chicago; Editing by Bernard Orr)

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Reuters: Business News

Nike profit tops Wall Street estimates, shares rise