Local Earnings and Recreation Fueling the Broader Economy

Micro-level economic updates and structural industry data took center stage today, offering a detailed look at how U.S. consumers are earning and spending. Fresh numbers from the Bureau of Economic Analysis reveal a robust expansion in personal income across the nation's counties, alongside a resilient outdoor recreation sector that continues to inject hundreds of billions into the national gross domestic product. Together, these reports picture an economy supported by solid local wage growth and persistent demand for leisure and travel.

A Broad-Based Surge in Personal Income

The latest regional numbers show that personal income increased in 2,814 counties, declined in 295, and was unchanged in five. Nationally, personal income rose 5.9% in 2023, up from 3.1% in 2022. Metropolitan counties led with a 6.0% gain, while nonmetropolitan areas grew 4.7%.

Per capita personal income mirrored this positive trend. U.S. per capita personal income grew 5.4%, up from 2.8% the previous year. Metropolitan per capita income rose 5.5%, while nonmetropolitan areas saw a 4.4% gain.

Local variations were stark. Metropolitan Oldham County, Texas, led with a 17.3% surge, while Oliver County, North Dakota, declined 8.6%. In rural areas, Sherman County, Texas, skyrocketed 38.7%, while Sheridan County, North Dakota, plunged 29.1%.

The $697 Billion Outdoor Recreation Economy

Consumer spending patterns also remain strong, particularly in the leisure and travel sectors. The outdoor recreation economy contributed 2.4%—equivalent to $696.7 billion—to the nation's current-dollar gross domestic product. While real GDP for this sector grew by 2.7%, representing a slight deceleration from the 5.3% growth seen in 2023, it closely matched the broader U.S. economic growth rate of 2.8%.

This steady performance supported a 5.2% increase in outdoor recreation compensation and a 1.1% rise in employment. Job growth in this sector expanded in 36 states and the District of Columbia, led by a 4.3% employment jump in North Dakota. Meanwhile, Hawaii saw a 4.0% decline in recreation jobs, even though the state led the nation with outdoor recreation accounting for 6.1% of its total GDP.

Boating and Travel Lead the Charge

Conventional outdoor activities continue to attract significant dollars. Boating and fishing remained the largest conventional category, generating $38.4 billion in value added, with Florida ($4.4 billion), California ($3.3 billion), and Texas ($3.0 billion) contributing the most. RVing followed closely at $27.5 billion, driven by Indiana’s manufacturing hub which contributed $5.2 billion.

Supporting activities, including travel and tourism, accounted for 51.5% of the sector's total value added. The arts, entertainment, recreation, accommodation, and food services industry group served as the largest overall contributor at $174.4 billion, followed closely by retail trade at $169.1 billion.

Sources: Bureau of Economic Analysis (Personal Income), Bureau of Economic Analysis (Outdoor Recreation).