Sales tax figures suggest improvement in area economy

The up-and-down Cape Girardeau economy appears to be up again, judging from October sales tax revenue.

But county and city budget officials and even a local economist aren't certain why sales are up, particularly since the national economy remains in the doldrums.

"I'm really surprised," said John Richbourg, Cape Girardeau city finance director. "I hope it shows a trend, but I think it is too early to say it does," he said.

Dr. Terry Sutton, an economics professor at Southeast Missouri State University, said Southeast's growing enrollment might account for the economic boost. Students returned to the campus in mid-August for the start of the fall semester. "Students are free spenders these days," he said, explaining that students spend money on everything from dorm furnishings to eating out.

The city of Cape Girardeau received October sales tax revenue of $679,264, up $63,700 from a year ago. Cape Girardeau County's October sales tax check totaled $471,796, up $22,000 over the same month last year.

The October checks reflect sales made in August and include back-to-school purchases, city and county budget officials said.

H. Weldon Macke, county auditor and the chief budget officer for the county government, said the October checks are good news for the economy and local government.

Both the county and city governments experienced a drop in September sales tax money with last month's check down by more than $15,000 for the county and $35,000 for the city. Those declines followed two straight months of sales tax revenue growth.

Up for the year

Thanks largely to the October checks, sales tax revenue for the county and city governments are up for the year. The city of Cape Girardeau has received $6.45 million in sales tax revenue for the first 10 months of this year, up more than $60,000; the county has garnered $4.48 million, up just more than $4,100 over the same period a year ago.

Sutton, the economist, said the October sales tax numbers conflict with the bleak national economic news. "The stock market keeps falling and that indicates low profitability for businesses all across the country," he said.

But that hasn't stopped people from shopping. Sales at Cape Girardeau's mall are up 2.5 percent so far this year, said Jim Govro, general manager of Westfield Shoppingtown West Park. "We are kind of ahead of the curve."

In August, women's clothes sold well, he said. Sales of women's apparel jumped 13 percent in August over the same month a year ago.

"When moms feel comfortable enough that their families are being taken care of and they start spending money on themselves, we know the economy is good," Govro said.

Megan Hempstead of Cape Girardeau isn't surprised by all the August spending. Hempstead, a student at Central High School, worked all summer so she could have some spending money.

"I spent it all on school stuff," she said Thursday as she chatted with a friend in the mall.

But Laurie Fields of Cape Girardeau hasn't been spending as much. "I am not a big shopper," said Fields as she pushed her 1-year-old daughter, Sarah, in a stroller at the mall.

Fields said she visited the mall to buy a pair of shoes for her daughter. She and her husband are trying to make ends meet on a single income. Fields said they're trying to stick to a tighter budget, so Thursday's mall trip was a rarity.

"It is cheaper to stay at home," she said.

mbliss@semissourian.com

335-6611, extension 123