Today the U.S. Department of Commerce’s Bureau of Economic Analysis released new personal income data for the first quarter of 2011 by state (pdf) and revisions for the past couple of years. As shown in Chart 1, New Hampshire’s private sector share of personal income for the first quarter of 2011 was at 75.7 percent–or 9.3 percent larger than the national average. While this is the highest point since the third quarter of 2009, the private sector has essentially been moving sideways.
Chart 2 shows the major culprit behind this crowding-out of the private sector since the beginning of the “Great Recession”–the Orwellian American Recovery and Reinvestment Act (ARRA). In the first quarter of 2011, the ARRA pumped $103 million into New Hampshire’s economy via personal current transfer receipts (pdf). This is down from the peak spending ($345 million) under ARRA in the second quarter of 2009. As ARRA spending continues to wind-down, this will help New Hampshire’s private sector rebound from its all-time lows though it puts a drag on overall personal income growth.
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