Real income provides a realistic picture of changes in residents’ purchasing power over time by adjusting the nominal personal income in each period for the change in price levels. For a discussion of how the Consumer Price Index (CPI) is used to adjust for changes in price levels, please refer to the CPI chart within this series.

In the 1980s, New England experienced dramatic swings in real personal income. Since New England recovered from the effects of the 1990-1991 recession, its real personal income growth has tracked the nation's. New England saw a dramatic swing in Real Personal Income growth right before the rapid decline associated with the 2001 recession. These declines were repeated a few years later during the 2008-2009 recession. In fact, New England and the nation both experienced declines in Real Personal Income for most of the 2008-2009 recession.