Indiana's income growth was 0.7 percent during the first quarter, trailing the national average of 1.1 percent and neighboring Illinois's 1 percent growth in income, according to newly released Bureau of Economic Analysis data.
The state's first-quarter income growth ranked 39th nationally and seventh out of the 12 Midwestern states. Iowa, Minnesota, Nebraska North Dakota, South Dakota all fared worse.
Indiana residents made an average of $38,812 last year, or about 2.3 percent more than the previous year, according to the Bureau of Economic Analysis data. The average income nationally rose 2.6 percent to $44,543 over the same period. Indiana's income was 38th nationally.
The Hoosier state once had the 21st highest income nationally during the 1950s, but it's been declining steadily since as good-paying manufacturing jobs have disappeared because of automation and outsourcing. Manufacturing makes up a higher percentage of the workforce in Indiana than in any other state, but that's not the sector where incomes are growing.
The Bureau of Economic Analysis found that health care, construction, and professional services were the biggest contributors to growth in personal income during the first quarter.