November 21, 2001

N.D. Income Growth Outpaced Inflation in 2000

North Dakota per capita personal income grew 7.5 percent in 2000 to $24,780. According to the Economic Brief recently released from the North Dakota State Data Center at North Dakota State University, prices paid by consumers (as measured by the Consumer Price Index) increased 3.4 percent in 2000. This means North Dakota’s income growth, although relatively small, is still outpacing inflation.

"This is very good news for North Dakota because it means, on average, our buying power has increased over the past 5 years," said Richard Rathge, director of the State Data Center. "However, we need to put these data in perspective. Earnings in the wholesale trade sector increased 1.7 percent while the earnings of those in durable manufacturing rose 8.1 percent. Thus, the income gains were not shared evenly by all. In addition, per capita income is calculated by dividing total income by total number of people. Therefore, a few very high wage earnings can artificially inflate the average and distort the picture."

Nationally, North Dakota ranks 38th in per capita income, 15.9 percent below the U.S. average of $29,451. Connecticut ranked first at $40,870, followed by Massachusetts and New Jersey ($37,710 and $37,112, respectively).

Total personal income in North Dakota rose to $15.9 billion in 2000, up 7 percent from $14.9 billion in 1999.

Within North Dakota, the fastest growing non-farm industry between 1999 and 2000 was finance, insurance and real estate followed by retail trade then mining (6.53 percent, 6.49 percent and 6.36 percent respectively).

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Source: Richard Rathge, (701) 231-8621, richard.rathge@ndsu.nodak.edu
Editor: Tom Jirik, (701) 231-9629, tjirik@ndsuext.nodak.edu

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