Economists credit construction sector earnings, population growth, and competition for workers - joblessness in Utah is at a record low - for the boost.
Personal income is the income received by all persons from all sources. Nationally, the rate grew by 1.4 percent in the third quarter.
More income means more income tax revenue, which is one reason Robert Spendlove, chief economist to Gov. Jon Huntsman Jr., relies on the reports.
Personal income is one of the top indicators of economic growth and a big help in forecasting revenues for the state, Spendlove said.
The quarterly reports also are helpful to industry analysts and companies deciding where to relocate and expand operations, said Matthew von Kerczek, an economist with the Commerce Department. The welcoming committees out West have been busy.
Of the Top 10 ranking states, six are in the West and two - Utah and Wyoming - are in the Rocky Mountain Region. Not all personal income growth is related to population growth, and some states fluctuate more than others, von Kerczek said.
For example, the exercise of stock options in the information industry has frequently propelled Washington to first place in the growth rankings, as it did this quarter, and dropped the state into last place the following quarter.
Utah, however, is seeing sustained growth, von Kerczek said.
"I've been doing this for 11 years and I can't remember a time when Nevada, Utah and New Mexico weren't growing fast," he said.
Seven of the fastest growing states in the third quarter - Utah, Arizona, Louisiana, Nevada, New Mexico, Texas and Wyoming - experienced higher construction earnings in contrast to the rest of the country.
Louisiana, New Mexico, Texas and Wyoming also are notable for the relatively large contribution to earnings growth made by mining, which includes oil and gas extraction.
Mining also made a relatively large contribution to third-quarter earnings growth in Oklahoma, Alaska, and West Virginia.
Louisiana's personal income grew faster than the nation's in the third quarter, the first time this year its recovery from Hurricane Katrina had such a strong effect.
lfantin@sltrib.com

