Elevate Rapid City releases monthly indicator, trends for Rapid City economy
Gross sales for the city were just shy of $1,000,000,000, last month. The construction side showed over 1,100 building permits have been issued year-to-date, with over $200,000,000 in valuation.
President and C.E.O Tom Johnson is concerned that rising inflation could have people staying at home rather than taking a road trip.
“Wages did not keep up with that. Wages are up by three or four percent, inflations up by eight, and so you are seeing those eat into the budgets of everyday people. And so they are starting to re-evaluate their behaviors and I think until we see inflation get back into the five and the four percent range and people start to ease up on their budgeting, that is going to continue to happen.”
Despite inflation, Johnson sees economic gains continuing on the tourism side.
“We are a road trip destination. So I still think you will see folks from Minneapolis, Sioux Falls, Denver still be able to afford driving here. Where I think you will see the drop in traffic is from those larger distances in which those gas prices make a big dent. But I think that, depending on where interest rates go in the next five to six months, you could see us get through the other side and people start to change their behavior again.”
The nation’s inflation rate is currently at 8.6 percent.