Mainers' personal income shrank by 27% during Q2
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The drop in personal income was largely a result of reduced federal transfers, such as pandemic relief and stimulus payments.
Mainers’ personal incomes fell by over a quarter during the second quarter, according to federal data released Thursday.
Personal income in the state declined 27.7% between April 1 and June 30, the U.S. Bureau of Economic Analysis said. But Maine wasn’t alone — every state and the District of Columbia recorded decreases.
The decreases ranged from 10.1% in D.C. to 34% percent in West Virginia. Nationwide, the decrease was 21.8%.
The major reason for the sharp drop, according to federal economists, was the reduction in federal “transfer payments,” including stimulus payments and pandemic relief funds.
Maine’s Q2 personal income totaled $75.3 billion, which reflected a decrease in transfer receipts of $7.1 billion. Nationwide, the U.S. saw a reduction in transfer receipts of $1.7 trillion.
However, net earnings for Mainers during the second quarter increased by $6.2 billion, partially offsetting the decline.
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