B. Income & Prices

4th Quarter 2018 Report

Download Income Data Tables (spreadsheet)

In the second quarter of 2018, total annualized nominal GDP increased $3,021 million or 3.4 percent, from the second quarter of 2017. In the first half of 2018, total annualized nominal GDP increased $2,545 million or 2.9 percent from the same period of the previous year. In the second quarter of 2018, total annualized real GDP (in chained 2012 dollars) increased $755 million or 1.0 percent from the second quarter of 2017. In the first half of 2018, total annualized real GDP increased $389 million or 0.5 percent from the same period of the previous year (Table B-1 to B-3).

Hawaii’s total personal income increased during the second quarter of 2018 over the same quarter of 2017; all major components of personal income increased in the quarter. In dollar terms, the largest increases occurred in wages and salaries, followed by dividends, interest, and rent, personal current transfer receipts, proprietors’ income, and supplements to wages and salaries (Table B-4).

In the second quarter of 2018, total nominal annualized personal income (i.e. not adjusted for inflation) increased $2,415.6 million or 3.2 percent over that of 2017 (Table B-5). In the first half of 2018, total annualized personal income was $77,051.8 million, an increase of 3.0 percent from the same period of the previous year.

In the second quarter of 2018, wages and salaries increased $1,162.5 million or 3.2 percent over that of 2017. This was the 32nd consecutive quarterly year-over-year increase since the third quarter of 2010. In the first half of 2018, wages and salaries increased 2.6 percent from the same period of the previous year (Table B-8).

Supplements to wages and salaries, consisting of employer payments to retirement plans, private group health insurance plans, private workers compensation plans, and other such benefits, increased $176.3 million or 1.7 percent in the second quarter of 2018, from the same quarter of 2017 (Table B-9). In the first half of 2018, supplements to wages and salaries increased 1.5 percent from the same period of the previous year.

Proprietors’ income increased $258.7 million or 4.5 percent in the second quarter of 2018, over that of 2017 (Table B-10). In the first half of 2018, proprietors’ income was up 4.5 percent from the same period of the previous year.

Dividends, interest, and rent increased $696.5 million or 4.3 percent in the second quarter of 2018, from the same quarter of 2017. In the first half of 2018, income in this category was up 4.0 percent from the same period of the previous year (Table B-11).

The annualized personal current transfer receipts grew by $336.4 million or 2.9 percent in the second quarter of 2018 from the same quarter of 2017 (Table B-12). In the first half of 2018, personal current transfer receipts increased 3.5 percent from the same period of the previous year.

Contributions to government social insurance, which is subtracted from total personal income, increased $214.8 million or 3.6 percent in the second quarter of 2018, compared to the second quarter of 2017. In the first half of 2018, contributions to government social insurance increased 3.1 percent from the same period of the previous year (Table B-13).

In the second quarter of 2018, total non-farm private sector annualized earnings increased $1,578.4 million or 4.2 percent from the second quarter of 2017. In dollar terms, the largest increase occurred in health care and social assistance; followed by accommodation and food services, retail trade, professional, scientific, & technical services, and construction. During the second quarter of 2018, total government earnings increased $18.3 million or 0.1 percent from the same quarter of 2017. Earnings from the federal government increased $109.1 million or 1.3 percent. Earnings from the state and local governments decreased $90.8 million or 1.3 percent in the quarter (Table B-4).

In the first half of 2018, Honolulu’s Consumer Price Index for Urban Consumers (CPI-U) increased 1.6 percent from the same period in 2017. (Table B-14). This is 0.9 of a percentage point below the 2.5 percent increase for the U.S. average CPI-U and is lower than the first half of 2017 Honolulu CPI-U increase of 2.5 percent from the same period of the previous year. In the first half of 2018, the Honolulu CPI-U increased the most in Transportation Housing (4.3 percent), followed by Food and Beverages (2.1 percent), Housing (1.8 percent), Other Goods and Services (1.7 percent), and Recreation (0.9 percent). The price of Education and Communication decreased 2.5 percent and the price of Apparel decreased 2.8 percent compared to the first half of 2017.