Coloradans slipped one spot in the U.S. rankings of income levels and fell behind their Wyoming neighbors but still sit comfortably in the top 10.

"The bad news is that Colorado dropped from seventh place," said Jeff Thredgold, the Vectra Bank Colorado economist. "The good news is that eighth ain't bad."

Per capita personal income in Colorado last year rose to $39,186, making the state No. 8, trailing New Hampshire and ahead of Virginia, according to Bureau of Economic Analysis statistics released Tuesday.

But personal income, one measure of how the state is doing economically, didn't climb as quickly as the U.S. average. Colorado's gain of 4.5 percent compared with a 5.2 percent increase for the U.S. Per capita personal income across the country was $36,276.

Inflation in the Denver, Boulder and Greeley region last year was 3.6 percent, meaning Coloradans gained ground - albeit slightly.

"The reality is that our real wage gain was less than that of the nation," said Patty Silverstein, an economist with Development Research Partners. "But wages and income levels are keeping up with inflation, and that's what you want to see."

Wyoming's per capita personal income surpassed Colorado's in 2006, climbing to $40,676 and sliding into the No. 6 notch amid a boom in the mining sector. The state in 2005 returned to the top 10 after an absence of 23 years, according to the report.

Connecticut remains the richest state in terms of personal income, and Mississippi is the poorest, the statistics show.

Looking at it another way, the sum of all income for Coloradans rose by 6.5 percent, faster than the 6.3 percent national average.

It's hard to explain why Colorado's per capita personal income growth was weaker than the U.S. average while its personal income increase outpaced the nation's.

One factor is that Colorado experienced a significant rise in population last year relative to other states, and perhaps a lot of newcomers arrived with children.

The BEA calculates the per capita figure by taking total income and dividing it by the population, including children and people who don't work. Income includes salaries and such other sources as dividend, interest and rental income.

The estimates for 2006 will be revised later this year.

The U.S. rate was the strongest so far in an economic expansion that started in December 2001, according to the BEA, part of the U.S. Department of Commerce.

"Tight labor markets have been forcing salaries and wages higher, and this data validates that view," Thredgold said. "Strong income growth nationwide is one factor that will help the economy continue to grow, despite the problems in the housing market."

States with highest per capita income in 2006

Connecticut   $49,852

New Jersey   $46,344

Massachusetts   $45,877

Maryland   $44,077

New York   $42,392

Wyoming   $40,676

New Hampshire   $39,311

Colorado   $39,186

Virginia   $39,173

Delaware   $39,022Source: Preliminary Data Bureau Of Economic Analysis

patonj@RockyMountainNews.com or 303-954-2544

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