Nevada taxable sales saw gains in December

Improved clothing and car sales and more construction spending in December helped lift taxable sales across Nevada, the state Department of Taxation reported Monday.

Taxable sales grew 3.8 percent, to $4.2 billion, year over year in December, a bellwether month for retail sales. Clark County posted bigger gains, with a 9.5 percent year-over-year spike to $3 billion.

Sales of clothes and accessories jumped 12.9 percent statewide and 12.3 percent in Clark County, while sales among dealers of cars and car parts rose 15.3 percent statewide and 17.1 percent in Clark County. Other major categories, including bars and restaurants and durable-goods wholesalers, also saw sizable sales pickups in the month. The only big spending category to lose ground was general merchandise stores, including department stores, which posted a 1.8 percent sales dip statewide and a 2.9 percent falloff in Clark County.

Brian Gordon, a principal in local research and consulting firm Applied Analysis, called December a "pretty strong" sales month.

"The level of consumer spending suggests that residents and visitors are starting to crawl out of their shells and invest in not only big-ticket items that they held off on buying during the downturn, but also on more day-to-day items," Gordon said. "We're seeing growth rates in double digits, which is something we haven't been accustomed to in the past three to four years. That's a sign that some sectors are starting the healing process."

The latest numbers are part of a string of sales improvements, Gordon noted. In the first six months of fiscal 2012, which began July 1, car dealers in Clark County saw a 9.5 percent sales gain. Local clothing retailers have seen sales rise 15.6 percent in the first half of the fiscal year.

Gordon credited a combination of necessity -- consumers can hold off on new cars and clothes only so long -- and improving consumer confidence for the increases.

Even construction-related spending rose, though it would be difficult to fare worse than 2010's low sales levels.

Construction sales gained 23.6 percent statewide, and 6.4 percent in Clark County. The biggest local driver of the spending uptick was renovations along the resort corridor, Gordon said. He added that it's too early to draw conclusions about whether the building sector is ready to bounce back.

And overall, taxable sales remain below their pre-recession peak. Statewide, December's figures were 10.3 percent below a December 2006 high of $4.7 billion. Clark County was 14.1 percent beneath its December 2007 apex of $3.5 billion.

Gross revenue collections from sales and use taxes totaled $324.8 billion in December, up 3.1 percent from a year earlier. Revenue from taxable sales helps fund prisons and schools, among other social services.

From July to December, the General Fund share of sales and use taxes was $12.8 million above forecasts set by the Economic Forum, which projects state income for budgeting purposes.

Contact Jennifer Robison at 380-4512 or jrobison@reviewjournal.com.