South Dakota Outpacing Most of the Nation in Personal Income Growth
Thursday, March 29, 2012
Courtesy GOED www.SDReadyToWork.com
PIERRE, S.D. – South Dakotans made more money last year than they did in 2010 and were among the nation’s leaders in income growth.
Preliminary data just released by the U.S. Bureau of Economic Analysis shows South Dakotans’ personal incomes grew by 6.2 percent in 2011, which was the fifth greatest increase among all states. Personal income nationally rose by 5.1 percent.
South Dakota also outpaced the national 4.3 percent increase in per capita personal income last year, according to the preliminary data, growing by 5.2 percent – fourth highest among all states.
Lt. Gov. Matt Michels said South Dakota fared better than most states during the waning national recession, largely because of its stable economic base. South Dakota has one of the best tax climates in the nation, and businesses are taking notice of it, he said.
“We have a very favorable tax climate. We’re promoting job training, getting people back to work and trying to further stimulate the South Dakota economy,” Michels said. “The farm and ranch sector has been a steady hand, our thriving tourism community also helped raise personal income, and manufacturing is on the upswing.”
Over the past five years, the average annual growth of South Dakota’s personal income was 5.2 percent and ranked second in the nation – behind only North Dakota. During the same period, national average growth in personal income was just 2.9 percent.
Growth in personal income is important for a couple of reasons: It shows that the state economy is trending in a positive direction, and it helps position South Dakota businesses for financial success in the future.
South Dakota’s per capita personal income in 2011 was 21st highest in the nation, at $41,590. The South Dakota ranking was 35th in 2001.
Per capita personal income in South Dakota grew from 89.4 percent of the national average in 2001 to 99.8 percent in 2011, an increase of 10.4 percentage points, which was among the largest gain of any state.