Personal income in the Rushmore State grew by just 1.2 percent in 2016, ranking South Dakota No. 45 in the nation, according to a release from the Bureau of Economic Analysis (BEA). Overall, states experienced 3.6 percent personal income growth in 2016.
A downturn in farm earnings was responsible for slow growth in South Dakota and other Corn Belt states, while sharp declines in mining led to negative personal income growth in neighboring Wyoming and North Dakota. Wyoming experienced the slowest growth in both the region and nation with a drop of 1.7 percent. Minnesota experienced the highest personal income growth in the region with an increase of 3.0 percent, ranking the state 32nd in the nation. An overview of personal income in the region can be seen in the table below:
A significant decline of 2.6 percent in personal income growth from farm earnings occurred in South Dakota in 2016. Total earnings from the farming industry fell by nearly 57 percent or $1.056 billion dollars. Meanwhile, the state’s retail economy was undoubtedly affected by a $1.541 billion drop in personal income in Wyoming and North Dakota.
Despite the headwinds in agriculture and mining, other sectors in the South Dakota economy experienced significant positive growth. The biggest winners were construction, where personal income rose by $200 million or 10.1 percent and finance and insurance, which grew by $134 million, up 5.5 percent. Personal income growth derived from state and local government also rose by $160 million, up nearly 4.8 percent. The top ten industries contributing to personal income growth in South Dakota can be viewed below:
|Industry||Growth in Dollars||Percentage|
|Health Care and Social Assistance||275,000,000||6.8|
|Accommodation and Food Services||53,000,000||5.6|
|Finance and Insurance||134,000,000||5.5|
|State and Local Government||160,000,000||4.8|
|Federal Government (Civilian)||160,000,000||4.4|
To learn more about these estimates and see breakdowns for all major industries, view the full BEA release.