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BISMARCK - North Dakota's taxable sales and purchases for the second quarter of 2024 have shown a slight decline, decreasing by 2.1% compared to the same period in 2023, according to the North Dakota Tax Department. For April, May and June of 2024, taxable sales and purchases totaled $6.8 billion, a department news release stated.
"North Dakota remains a commodity-driven state. Pricing in that space, whether on a bushel or barrel basis, significantly influences overall economic activity and subsequently, consumer purchases," Tax Commissioner Brian Kroshus said in the release. "Recent lower oil and grain pricing, compared to the previous year, were certainly reflected in the mining, oil and gas extraction, and manufacturing categories this past quarter. At the same time, two in three categories posted positive gains, a reflection of North Dakota's diverse economy."
Notably, 10 of the 15 major industry sectors reported increases in taxable sales and purchases compared to the second quarter of 2023. Significantly, the transportation and warehousing sector saw a $19.6 million increase, marking a 30.8% rise. The state's largest sector, retail trade, essentially remained unchanged compared to the same period last year, while mining, oil and gas posted a decrease of 6.5%.
Percent changes for the second quarter of 2024, compared to the second quarter of 2023, for the four largest cities in North Dakota were: Bismarck, down 0.22%; Fargo, down 6.75%; Grand Forks, down 5.86%; and Minot, down 5.07%.
"After an extended stretch of strong, double-digit increases, the small decrease in taxable sales and purchases this quarter likely reflects that economic activity continues to normalize. Still, conditions are constantly evolving, and next quarter results will provide better clarity on the direction of the state's economy," Kroshus said.