Tennessee personal income rises in 2010

State personal income data released today shows Tennessee’s income grew 3.8 percent PAULSON+MONEY.jpgfrom 2009 to 2010, another sign that the recovery is edging forward.

Only five other states posted larger percentage increases — New Mexico (4.2), New York (4.1), Kentucky (4.0), Mississippi (3.9), and Alaska (3.9), according to the U.S. Bureau of Economic Analysis.

The national average was 3 percent growth.

Personal income data includes three components — earnings, property income and personal current transfer receipts. All three components rose nationally and in Tennessee last year. In 2009, only transfer receipts increased, BEA reported.

In Tennessee last year, transfer receipts rose 7.36 percent and earnings increased 2.36 percent.

Despite Tennessee’s relatively strong increase in personal income, on a per capita basis the state’s personal income remains one of the lowest in the country. Tennessee’s per capita income of $35,307 ranks 39th among the states and is equal to only 87 percent of the U.S. average of $40,584.

For those who want to dig deeper into the data, click here for the complete BEA report.