Personal income in South Dakota rose 1.4 percent between the second and third quarters of 2016, compared to a 1.1 percent increase for the nation, according to data released this week by the U.S. Bureau of Economic Analysis (BEA). After ranking 47th in the nation in the second quarter of the year, South Dakota’s personal income growth led all other states in the third quarter.
South Dakota’s growth was driven primarily by increases in wages and salaries and proprietor’s income, as compared to income from investments or government transfer payments under programs like Social Security. Improvements in farm income contributed 19 percent to the state’s total growth, followed by Finance and Insurance (17 percent), Health Care and Social Assistance (16 percent) and Government (14 percent).
South Dakota typically sees a surge in farm incomes during the third quarter of the year, and this year was no exception. Farm income grew by $80 million or 10.82 percent compared to the second quarter of the year. Other fast-growing sectors included Mining (up 3.48 percent), Transportation and Warehousing (up 3.27 percent), Management (up 3.57 percent), and Arts, Entertainment and Recreation (up 3.48 percent). No sectors experienced a decline in the third quarter.