Taxable sales increase in April

Consumer spending in Nevada continued to dig its way out of the downturn in April, with respectable gains in sectors ranging from car sales to restaurant dining.

Taxable sales jumped to $3.53 billion in April, up 5.1 percent from $3.36 billion in April 2011, the state Department of Taxation reported Thursday. In Clark County, sales rose to $2.59 billion, up 4.9 percent from $2.47 billion a year earlier.

The gains were typical: Since taxable sales began recovering in July 2010, year-over-year improvements have mostly ranged from 5 percent to 10 percent.

"More of the same suggests that consumer spending is relatively stable, and continuing to improve from the floor in the latest cycle," said Brian Gordon, a principal of Las Vegas economic research firm Applied Analysis. "Both residents and visitors appear to be opening their wallets more than they had in the recession, and that is a positive not only for local retailers, but for the community as a whole."

Every major sales category improved in comparison to a year ago.

Dealers of cars and car parts saw sales increase 10.5 percent statewide and 10.4 percent in Clark County. Furniture sales jumped 5 percent statewide and 7.3 percent in the county. Sales among retailers in hotels and motels rose 13.4 percent across Nevada and 17.6 percent in the county. And bars and restaurants experienced a sales gain of 3.5 percent both statewide and locally.

Bob Ansara, co-owner of Mexican restaurant Ricardo's of Las Vegas, said his sales increased about as much as the sector's statewide sales.

"We seem to have found the bottom," Ansara said. "I think the recovery is going to be slow, and it's going to come back in small chunks, but it seems like it's trying to recover. Across the board, it's a tiny bit better."

Sales at Ricardo's, where the average ticket price is $17, are still about 20 percent below their prerecession average, Ansara said. At the downturn's depths, sales were 30 percent off. And the business hasn't been able to raise its prices in four years.

"The industry is still beleaguered, with the exception of a few hot spots," Ansara said. "Even though economists tell you we're out of recession, we're still in recession."

A look at the overall numbers shows the state's sales do indeed remain well below prerecession levels. April sales peaked in Clark County in 2006, when they hit $2.94 billion. That's 13.5 percent higher than the most recent April.

Despite slipping national consumer confidence, stagnant job growth and fiscal crisis in Europe, Gordon said he expected taxable sales to hold steady in coming months, or even post "modest growth."

Gross revenue collections from sales and use taxes in April totaled
$272.5 million, a 2.6 percent increase compared with April 2011.

Sales and use taxes help fund prisons and public schools.