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Trend of business: United States economy, the South Dakota economy.

TREND OF BUSINESS

United States Economy

Inflation's upward movement and slow economic growth characterized activity in the first quarter. High interest rates designed to curb demand for goods and services will hopefully reduce the effects of inflation.

Retail sales volume has dropped below a year earlier. Debts acquired by consumers in the 1980's, along with a slowdown in job and income growth have weakened consumers' purchasing power.

The unadjusted unemployment rate for the first quarter of 1990 of 5.7 percent was up from the 5.1 percent rate of the previous quarter. There was some pick-up in the first two months of the year with employers hiring 300,000 more workers in both January and February. This increase was partly the result of increased hiring in the construction industry.

According to revised first quarter 1990 estimates, gross national product (GNP) rose 7.0 percent (annual rate). Real GNP (adjusted for price changes) rose 1.3 percent.

The South Dakota Economy

South Dakota's unemployment rate went from 3.4 percent to 3.7 percent in the first quarter of this year on a seasonally adjusted basis. Overall little change occurred in the nonagricultural employment sector for this period. However, construction employment was strong with a seasonally adjusted 4.6 percent increase in the first quater of 1990.

Personal income rose 4.3 percent in the final quarter of 1989. Some growth areas in the nonfarm industries occurred in mining (4.1%), construction (3.8%), and the service sector with a 2.9% increase from the third quarter of 1989. Farm proprietors' income experienced a dramatic increase of 165.7 percent.

The sale of new cars and trucks in the first quarter of 1990 was strong. On a seasonally adjusted basis, new truck sales rose 20.6 percent, while car sales advanced 15.7 percent.

Further comparisons of these indicators are included in the graphs on the following page.
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Publication:South Dakota Business Review
Date:Jun 1, 1990
Words:318
Previous Article:Personal income: 1988-1989.
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