July 14, 2025

South Dakota dropped 2 points to fall farther in the bottom half of CNBC’s annual ranking of top states for business.

The state came in at No. 35 in America’s Top States for Business in 2025, down from No. 33 last year.

CNBC scored all 50 states on 135 metrics in 10 broad categories of competitiveness.

“The fundamentals of the study, now in its 19th year, are the same as they have always been, identifying the factors companies consider year after year when making site selection decisions and that states pitch in their efforts to woo business,” according to the news organization. “Each category is weighted based on how frequently states use them as a selling point in economic development marketing materials, with economy No. 1 this year.”

New this year, metrics were added to gauge the states’ risks from a trade war and a shrinking federal budget.

“We have also enhanced some of our infrastructure metrics to determine how the states are delivering on companies’ power and data demands,” CNBC said in a statement. “We developed our criteria and metrics in consultation with a diverse array of business and policy experts, and the states.”

South Dakota ranked second best for business friendliness, behind North Dakota. The state ranked second to last in technology and innovation.

Here’s how South Dakota fared in the categories:

North Carolina ranked No. 1.

For the full ranking, visit here.