Recently released gross taxable sales data from the Utah State Tax Commission can help flesh out the economic situation in Utah's southwestern corner. Three of the five counties in this area--Iron, Kane, and Washington--experienced a sales growth during the third quarter of 2011.
In line with most economic indicators, gross taxable sales took a decided hit during the recent business downturn--particularly when compared to the "booming" sales of previous years. Like employment, improvement in the sales arena has proved rather slow for most areas.
Iron County's worst sales declines occurred in mid-2009. Since that point, only three quarters displayed year-to-year gains. Third quarter 2011 was one of those quarters with a 4-percent increase. Improvements in the labor market suggest that sales may also pick up in 2012.
During the third quarter of 2011, Kane County's sales increased roughly 5 percent compared to the same time period in 2010. Kane County's sales record has proved more enthusiastic (if erratic) since the bottom of the downturn. This trend also mimics employment trends. Kane County returned to job growth status sooner than most Utah counties although not without a few stumbling blocks.
During the third quarter of 2011, Washington County managed its best year-over gain in sales since 2006. Sales grew by 7 percent marking the third straight quarter of sales improvement. Again, sales gains have tracked gains in the labor market.
On the losing end, Garfield County's sales dropped by almost 8 percent in the third quarter. This decline marked a deterioration in the county's past positive performance during the past two years. Again, the current decline in sales follows the trend set by employment levels.
Beaver County joined Garfield as the other sales-losing county. Similar to many other small counties, Beaver County's sales have followed an erratic course. In less-populated counties, small numeric changes result in larger percent changes. However, another factor is also at work in Beaver County. Large and temporary business expenditures have generally kept Beaver County's sales high in recent quarters. However, once the business expenditures ceased, more normal sales levels appear to be notable declines. Such is the case with Beaver's current 6-percent decrease in sales. During most of 2010 and 2011 sales were increasing at double-digit rates.
For more detailed information on quarterly gross taxable sales, click here.