Personal income declined by $336 million or 0.8 percent in South Dakota during the first quarter of 2015, according to the U.S. Bureau of Economic Analysis. Sharp drops in farm incomes throughout the Great Plains were a major factor.
Across the United States, earnings increased 0.8 percent in the first quarter of 2015. Declines in farm income more than offset income gains in all other sectors in South Dakota, Nebraska, Kansas and Iowa. Among the fifty states, only Iowa turned in a lower personal income performance than South Dakota.
Net earnings from wages and business income actually dropped 1.9 percent in the state in the first quarter. Cost-of-living increases for Social Security benefits helped offset some of this decline in the state’s personal income by increasing transfer receipts by 1.4 percent, while increases of 0.8 percent in earnings from dividends, interest and rents provided another boost to an otherwise flagging economy.
In South Dakota, seasonally adjusted Farm earnings fell by $696 million from the fourth quarter of 2014, down 25.29 percent. The strongest growth sectors on a percentage basis were Utilities (up 3.54 percent) and Construction (up 2.89 percent). Health Care and Social Assistance saw the largest increase in actual earnings, up $65 million in the first quarter.
For further details, see the release from the U.S. Bureau of Economic Analysis.