States in New England, the mid-Atlantic and along the West Coast will lag the nation in income growth through 1999, and the Great Lakes states will continue their economic winning streak.
"That's the reverse of the 1980s, when New England and the Far West were red hot and the Great Lakes states suffered through the Rust Belt realities," said Diane C. Swonk, deputy chief economist of First Chicago NBD Corp.
She said the Southeast region of the United States, the Rocky Mountain states and the Southwest also will show above-average growth in real disposable income.
On the other hand, the Plains states will fall below the U.S. average annual growth rate of 2.2%.
"The trends shaping the U.S. economy today favor the more traditional end of the heavy manufacturing sector over growth in key service and government-dependent industries," Ms. Swonk said.
"The Midwest stands to benefit from accelerating exports and from strong gains in equipment spending as companies invest their record profits," she added.