September sales up in Cape County

Terrorism may have slowed the nation's economy in September, but local consumers opened their pocketbooks.

Cape Girardeau County's November sales tax check was 39 percent more than for the same period a year ago. Cape Girardeau saw its November sales tax check jump by 38 percent over November 2000.

The checks from the state reflect local sales from September, said H. Weldon Macke, Cape Girardeau County auditor.

The county received $251,230, up from $180,407 a year ago. The city's check totaled $362,788 compared to $262,176 a year ago.

John Richbourg, Cape Girardeau city finance director, believes it also could include some auto sales from October.

Locally, the good economic news comes on the heels of a U.S. Commerce Department report that showed consumer spending surged in October, only a month after the terrorist attacks on the East Coast. The 7.1 percent jump over September was fueled by zero interest on car loans. Auto sales soared by a record 26.4 percent.

Macke said the November sales tax checks suggest the economy may be in better shape than experts thought.

Macke said the county's check shows Cape Girardeau County residents didn't cut back on spending because of the terrorist attacks. "They listened to the president and went ahead and spent," he said.

Out in force

Parking lots at shopping centers and major stores were filled, indicating shoppers were out in force, said Macke.

Debra Rau of Cape Girardeau said she didn't go shopping the first few days after the terrorist attacks. "I didn't feel like getting out and doing anything."

But she soon returned to her regular routines, including shopping.

She said she hasn't made any big-ticket purchases, but several friends have. "Several of my friends bought new vehicles lately," she said.

So far this year, the county has received sales tax revenue totaling $4.73 million, up from $4.56 million a year ago.

Last year, the county's December check totaled $607,554. This year's December check could be much higher, Macke said. The check, he said, should reflect October sales.

"The December check could be one of the largest in the county's history because of car sales," he said.

Richbourg isn't sure the November checks reflect a healthy economy. Most analysts still say the nation is in a recession.

The city's sales tax revenue has continued to increase annually, but at a lesser rate.

The city received $7.30 million in sales tax money in 1998, up 7 percent from the previous year. But revenue grew only 2 and 1.67 percent, respectively, in the last two years. Last year the city received $7.57 million in general revenue sales tax money.

This year to date, the city has garnered $6.76 million.

Richbourg said this year's growth is about 1 percent, indicating a sluggish economy.

The economic slowdown, he said, happened before the Sept. 11 terrorist attacks.

"It is hard to put a lot of importance on any one month," he said.

While the November check increased substantially over the same check of a year ago, it still was a small check in comparison with some of the other months, Richbourg said.

Hard to explain

Bruce Domazlicky, an economics professor at Southeast Missouri State University, doesn't know why the November checks increased so significantly.

"It is hard to explain what is happening," said Domazlicky, who keeps tab on the economics of the region as director of the Center for Economic and Business Research.

There's been little retail growth nationally within the past month other than in car sales, he said.

Still, the November sales tax checks for the city and county governments are good news, he said.

"It just shows the local economy seems to be holding up pretty well," he said.

mbliss@semissourian.com

335-6611, extension 123