|FOR IMMEDIATE RELEASE||Contact: Kathryn Strombeck, Research Analyst, 701.328.3402|
|Wednesday, January 8, 2014||Peggy Brintnell, Executive Assistant, 701.328.2771|
Rauschenberger: Third Quarter Taxable Sales and Purchases Show Moderate Growth
BISMARCK, N.D. – Tax Commissioner Ryan Rauschenberger announced today that North Dakota's economy grew at a moderate pace during the third quarter of 2013, which includes July, August, and September. According to the economic report, North Dakota's third quarter total taxable sales and purchases were $6.947 billion, up $166 million from the third quarter 2012, for a modest increase of 2.44%.
Thirteen of fifteen sectors reported growth during the third quarter.
"This is a good report, highlighting the fact that North Dakota's economy again continued to expand on top of the rapid pace of growth in 2012," said Rauschenberger. "It is very encouraging, considering the record level of sales growth experienced in recent years."
The wholesale trade sector showed the most growth in taxable sales and purchases, with the total rising $182 million compared to the same quarter 2012. The retail trade sector, the sector most often looked to as a measure of consumer activity, grew the second most in dollars, increasing by $98 million, a healthy 6% rise. Other sectors showing gains include: manufacturing, up $57 million or 15%; education, healthcare, and social services, up 18%; other services, up 12%; professional, technical, and management services, up 9%; arts, entertainment, and recreation, up 9%; financial, insurance real estate, rental and leasing, up 6%; information industries, up 5%, accommodation and food services, up 4%, transportation and warehousing, up 4%; and utilities, up 2%.
Two sectors reported declines, including: mining and oil extraction, down 19%; and construction, down a slight 2%.
"The mining and oil extraction sector has experienced explosive growth in recent quarters some of which was related to the construction of pipelines and other one-time expenditures," said Rauschenberger. "As drilling in the Bakken matures, we are expecting to see more moderation in this sector – and in others – as North Dakota progresses to a more sustainable rate of growth."
Of the 50 largest cities, the biggest percentage increases for the third quarter of 2013 were Linton, up 28%; New Rockford, up 24%; Hillsboro, up 22%; Oakes, Bowman, and New Town, all up by 20%.
The biggest percentage third quarter decreases for the 50 largest cities were Stanley, down 12%; Washburn, down 10%; Tioga, down 9%; Larimore, down 7%; and Williston, down 6%.
The complete North Dakota Sales and Use Tax Statistical Report for Third Quarter 2013 is available on the Tax Department's web site at: www.nd.gov/tax.
Rauschenberger is a graduate of the University of North Dakota with an Accounting degree and a Masters of Business Administration. Prior to his appointment as Tax Commissioner, he served as the Deputy Tax Commissioner for four-and-a-half years.
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