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Buffalo outpaces U.S. income-growth rate

by G. Scott Thomas

Income levels are growing more rapidly in the Buffalo area than in the United States as a whole, according to a report released Thursday by the U.S. Bureau of Economic Analysis.

Per capita income (PCI) in Erie and Niagara counties increased by 3.9 percent between 2007 and 2008. The corresponding national gain was 2.5 percent.

PCI is defined as the average amount of money received by each resident of a given area in a given year. It encompasses such diverse sources of income as salaries, interest payments, dividends, rental income and government checks.

The Buffalo area may have the edge in recent growth, but national income levels remain higher. Local PCI was $36,408 in 2008, compared to the national figure of $39,582.

The Bureau of Economic Analysis also reported on Thursday that total personal income (TPI) in the Buffalo area topped $40 billion in 2008 for the first time ever, reaching $40.9 billion. That was up from $39.5 billion the year before.

TPI is defined as the sum of all money received by all residents of a given area in a given year.