Taxable sales reports provide valuable economic tool

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In these difficult economic times, we at the Department of Economic Devel-opment are placing a special emphasis on providing accurate and reliable information about the state's economy to all Missourians. |ret||ret||tab|

Of course, that is always a goal, but we recognize there are more concerns than usual in this recessionary period. In an effort to respond to these concerns, the department has started tracking trends through regional taxable sales. |ret||ret||tab|

A new report, created to help determine potential economic impact, analyzes taxable sales for the 13 economic regions across Missouri. |ret||ret||tab|

Taxable sales are the funds generated by a variety of sources, namely retail sales, wholesale trade, service industries, communications industries, etc. |ret||ret||tab|

Retail sales actually account for about 70 percent of taxable sales in Missouri, so this report gives us a way to determine where sales are taking place and what impact seasonal conditions have on sales. |ret||ret||tab|

Taxable sales in Missouri totaled $16.4 billion for the third quarter of 2001, which is a 1.1 percent increase from the third quarter of 2000. However, when that number is adjusted for inflation and seasonal effects, the year-to-year growth was negative 1.6 percent indicating lagging sales. |ret||ret||tab|

The St. Louis metropolitan area accounted for 40.3 percent of taxable sales in the third quarter, followed by the Kansas City metropolitan area with 22 percent and the Springfield region with 9.4 percent. Regions with the least amount of taxable sales contribution for the third quarter were the north central region, with 0.8 percent, the south central region, with 1.2 percent, and the northeast region, with 1.6 percent. |ret||ret||tab|

All of these numbers are virtually un-changed from the second quarter of 2001. |ret||ret||tab|

It comes as no surprise that the St. Louis, Kansas City and Springfield areas lead the way in taxable sales. The distribution of taxable sales among Missouri's regions closely follows population. For example, the St. Louis metro area holds 35.8 percent of the state's population, and accordingly, generates the state's greatest percentage of taxable sales at 40.3. |ret||ret||tab|

Some regions boast greater taxable sales total than population; meaning consumers are traveling there from outside the region to spend money. Good examples of this are the Kansas City and St. Louis regions, both of which certainly draw tourists and shoppers from all over the state and from across our borders. |ret||ret||tab|

Regional taxable sales per capita also follow other taxable sales patterns, with St. Louis, Kansas City and Springfield leading the state. |ret||ret||tab|

One interesting finding is that Spring-field has the highest per capita taxable sales with $3,299 followed by Kansas City with $3,156 and St. Louis with $3,081. This change in rank may be at-tributed to the fact that Branson lies within the Springfield region, meaning that the tourist attractions there bring in taxable sales from beyond the region and the state. |ret||ret||tab|

As we continue to gather and analyze this data, we will be better equipped to assess economic conditions in each of Missouri's economic regions. |ret||ret||tab|

By looking at taxable sales in each region, we can determine which areas of the state draw the most sales and how that impacts the economic conditions of that area. We'll also be able to tell how holiday shopping and other seasonal factors influence regional economies. |ret||ret||tab|

These new tools will allow us to help our partners around the state gain an economic advantage and plan strategically for the future. |ret||ret||tab|

For complete information on each region of the state you can check our Web site at www.ecodev.state.mo.us/ research/regional/index.asp. |ret||ret||tab|

This includes regional demographic and economic data, including the taxable sales for each region.|ret||ret||tab|

(Joe Driskill is director of the Mis-souri Department of Economic Devel-opment.)[[In-content Ad]]