South Dakota economy sees growth

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The Commerce Department says the U.S. economy rose more than four percent in the second quarter, making it the best quarterly showing in four years.

But is the South Dakota seeing the same economic growth?

The answer is Yes.

The Black Hills Knowledge Network says in the first quarter, South Dakota's gross domestic product growth was 3.1 percent.

We also saw a 4.9 percent increase for income growth as well as labor force participation and population.

The Network says one way to improve our economy is to increase wage growth by creating a more dynamic labor market.

"We don't have a strong manufacturing base. We don't have as much of a diversified economy outside of the service sector. With the service sector, you tend to see just slower wage growth. The way around that, what we need in order to sort of spur wage growth there is just tighter labor markets. So we need more businesses competing for the number of workers," Dr. Jared McEntaffer said, regional economist, Black Hills Knowledge Network.

Dr. McEntaffer says another thing to watch out for is the pending tariff wars between the U.S. and its trading partners like China and the European Union.

He says the goods that are often hit with tariffs are agricultural products, which makes an agriculture-based economy such as South Dakota a little more sensitive to the trade wars.