Personal income in South Dakota rose 0.1% between the second and third quarters of 2017, compared to a 0.7% increase for the nation, according to data released today by the U.S. Bureau of Economic Analysis (BEA). After ranking 44th in the nation in the second quarter of the year, the Rushmore State’s personal income growth was the slowest in the nation in the third quarter.
South Dakota’s disappointing performance was driven primarily by a 0.1% decline in earnings (wages and salaries, and proprietor’s income). Investment income rose 0.1%, and transfer receipts—payments under programs like Social Security—rose 0.4%.
South Dakota typically sees a surge in farm incomes during the third quarter of the year, but this year the state experienced a large drop in farm income due to severe drought conditions and low commodity prices. As a result farm incomes declined by 24.19% ($173 million) from the second to the third quarter of 2017. The state also experienced marginal declines in forestry, fishing and related activities (-0.54%), construction (-0.43%), retail trade (-0.23%), and arts, entertainment and recreation (-1.61%).
Transportation and warehousing (+2.22%) and information (+1.35%) were the largest contributors to personal income growth in the third quarter. Earnings in the government sector grew across all contributing sub-sectors including federal (+1.29%), military (+0.60%), and state and local (+0.53%).
The following sectors also contributed to third quarter growth:
|Health Care and Social Assistance||+1.12|
|Administrative and Waste Management Services||+1.03|
|Durable Goods and Manufacturing||+0.87|
|Finance and Insurance||+0.87|
|Nondurable Goods Manufacturing||+0.73|