Real personal consumption expenditures (PCE) by state increased in all 50 states and the District of Columbia in 2021, according to statistics released today by the U.S. Bureau of Economic Analysis (BEA). The percent change in real PCE across all 50 states and the District of Columbia ranged from 12.5 percent in Utah to 2.0 percent in West Virginia (table 1).
Real PCE by state is a state's current-dollar PCE (Consumer Spending by State) adjusted by the state's regional price parity and the national PCE price index. In 2021, the national PCE price index increased 4.0 percent.
- Utah had the largest increase in real PCE, at 12.5 percent. Current-dollar PCE increased 16.3 percent while its implicit regional price deflator increased 3.4 percent (table 2).
- Massachusetts and Arizona had the second largest increase in real PCE, at 11.6 percent. Current-dollar PCE increased 13.4 percent and 13.1 percent in Massachusetts and Arizona, respectively. Their implicit regional price deflators increased 1.6 percent and 1.3 percent, respectively.
- West Virginia had the smallest increase in real PCE, at 2.0 percent. Current-dollar PCE increased 10.3 percent while its implicit regional price deflator increased 8.1 percent.
Real personal income increased in 48 states and the District of Columbia in 2021. The percent change in real personal income across all 50 states and the District of Columbia ranged from 7.2 percent in Nevada to –2.7 percent in Alaska (table 1).
- Nevada had the largest increase in real personal income, at 7.2 percent. Current-dollar personal income (Personal Income by State) increased 9.7 percent while its implicit regional price deflator increased 2.3 percent.
- Alaska had the largest decrease in real personal income, at 2.7 percent. Current-dollar personal income increased 4.9 percent while its implicit regional price deflator increased 7.8 percent.
- West Virginia was the only other state with a decrease in real personal income, at 1.2 percent. Current-dollar personal income increased 6.8 percent while its implicit regional price deflator increased 8.1 percent.
Regional price parities (RPPs) measure the differences in price levels across states for a given year and are expressed as a percentage of the overall national price level.
The all items RPP covers all consumption goods and services including housing rents. Areas with high/low RPPs typically correspond to areas with high/low price levels for rents.
- States with the highest RPPs were Hawaii, at 113.2, California, at 111.8, and New York, at 109.5; the RPP in the District of Columbia was 111.3 (table 2).
- States with the lowest RPPs were Mississippi, at 86.6, Alabama, at 88.1, and Kentucky, at 89.1.
- Across states, California had the highest RPP for housing rents, at 164.9, and Mississippi had the lowest, at 56.2; the RPP for housing rents in the District of Columbia was 175.4.
The annual estimates of state real PCE for 2017 to 2020 and state and metropolitan area real personal income for 2014 to 2020 were revised. The updates incorporate revised source data that are more complete and more detailed than previously available. These include the results of the 2022 annual update of BEA's National and Regional Accounts.
BEA also released new estimates of state real per capita PCE statistics and real per capita personal income for 2021, along with revised estimates for 2010 to 2020. BEA used U.S. Census Bureau (Census) population figures to calculate per capita estimates for 2020 and 2021. For 2010 through 2019, BEA used intercensal population statistics that it developed based on Census methodology. See "Note on Per Capita Personal Income and Population."
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