Report Shows Personal Income In The Ohio Valley Declined Between July and September
A new federal report shows that West Virginia and Kentucky saw the country’s sharpest declines in personal income last quarter. Alana Watson explains the losses are tied to the pandemic and declining support from the coronavirus relief act.
The U.S. Bureau of Economic Analysis says personal income decreased in every state in the third quarter of 2020, which includes the months of July, August, and September. West Virginia and Kentucky saw the largest declines.
Income in West Virginia declined by almost 30 percent and Kentucky by 24 percent. Ohio’s personal income declined by 16 percent.
Personal income had increased in the second quarter from April to June due to the government’s economic support during partial COVID-19 shutdowns.
Matthew von Kerczek is an economist for the Bureau of Economic Analysis. He says the reduced COVID-19 aid from the CARES Act was one of the leading contributors to the decline in the third quarter.
“In the second quarter, the CARES act boosted personal income by about 3 trillion dollars. In the third quarter it’s just over 1 trillion dollars," Kerczek said.
Von Kerczek says there was a partial rebound in earnings in the third quarter due to the gradual reopening of the economy.
The final 4th quarter report will be released in March 2021.