South Dakota economy. (Business Highlights).

The selected group of economic indicators on the adjoining page show an upturn in construction employment in the third quarter of 2001 compared to the same period a year ago. Preliminary data for the third quarter of 2001 indicate nonfarm employment increased slightly for the period. Other major

divisions of nonfarm employment that showed third quarter increases include finance/ insurance/real estate (FIRE) with a 3.8 percent increase and retail trade had a 1.0 percent gain. Services and government showed slight increases. The manufacturing sector, which a year ago comprised nearly 13 percent of nonfarm employment, fell to 11.9 percent in the third quarter of 2001. The overall loss of 3,200 manufacturing workers for this period was due mainly to a decrease of 2,800 workers in the manufacture of durable goods sector. The reductions in manufacturing employment and sight decreases in transportation and wholesale employment have driven the unemployment rate to 2.9 percent in the third quarter of 2001 compared to 2.4 percent a year ago.

Total personal income in South Dakota increased 1.8 percent in the second quarter of 2001 from this period a year ago. Nonfarm personal income increased 4.2 percent in the second quarter of 2001 over 2000 levels. A sharp downturn in farm income slowed the state's overall increase in personal income. Other highlights from income data released by the Bureau of Economic Analysis showed that earnings in durable goods manufacturing decreased 4.7 percent for this, period. The strongest over-the-year gains occurred in wholesale trade and government. The 10.1 percent increase in the government sector was led by a 15 percent gain in state and local government earnings.

The sale of new cars increased nearly 5 percent in the third quarter of 2001 compared to a year ago. New truck sales were down slightly for this same period. Significant gains in new vehicle sales occurred in August and September of this year. Reports for October and November show a dip in sales.