South Dakotans experienced the lowest real personal income growth in the United States in 2014, according to a new retrospective study by the U.S. Bureau of Economic Analysis. Adjusted for regional prices, real personal income rose only 0.2 percent, compared to 2.9 percent for the country. On a per capita basis, real personal income in South Dakota (in 2009 dollars) declined from $47,456 in 2013 to $47,235 in 2014.
The statewide decline was driven by a sharp drop in farm incomes. In non-metropolitan South Dakota, real personal income dropped 0.8 percent in 2014. Declines in farm income also fueled weak growth in real personal income in Nebraska, Kansas, Iowa and Montana.
Meanwhile, in the state’s two major metropolitan regions, after declines in 2013, real personal income growth rebounded by 2.2 percent in Sioux Falls and 4.0 percent in Rapid City in 2014. On a per capita basis, the increases were smaller, but still positive—0.2 percent in Sioux Falls and 2.3 percent in Rapid City.
Among major cities in the Northern Great Plains, Sioux Falls’ real per capita personal income was the third highest at $48,169, compared to $56,274 in Casper, Wyoming and $49,146 in Bismarck, North Dakota. At $42,182, Rapid City trailed all other cities except Billings, Montana, which had a per capita real personal income of $40,148.
For other recent figures on personal income in South Dakota from the Bureau of Economic Analysis, see the South Dakota Dashboard’s June 22, 2016 post.