Taxable sales fall 9.4 percent; business up for cars, bars

By Cy Ryan

Published Wednesday, May 26, 2010 | 9:47 a.m.

Updated Wednesday, May 26, 2010 | 11:45 a.m.

CARSON CITY – Car sales and business in bars and restaurants in Clark County were strong in March compared to last year, but construction activity was in a slump.

Taxable sales, one indicator of the economy, fell by 9.4 percent in March in Clark County compared to the same month of 2009. It was the 19th consecutive month of a decline in Clark County.

The Nevada Tax Department reported Wednesday there were $3.3 billion in taxable sales statewide, down 7.4 percent.

Gov. Jim Gibbons said there were some encouraging signs but “other indicators continue to cast a shadow on Nevada’s economic recovery.” He said taxable sales rose in nine of the state's 17 counties in March, and 10 major sales indicators improved during the month.

The purchase of vehicles in Clark County during the month rose by 13.7 percent to $218.2 million, the second consecutive month of an increase after 26 months of dropping sales.

For the third straight month, business in bars and restaurants was up, by 6.3 percent, to $490.2 million in Southern Nevada.

But construction spending fell 10.2 percent to $87.5 million in Clark County. It was the 18th straight month of a decline.

The department reported sales in general merchandise stores in Clark County inched up 3.8 percent in March to $243.5 million. Furniture and home furnishing stores reported a 15.9 percent increase to $44.1 million.

For the sixth consecutive month, clothing sales rose in Clark County. The sales reached $229.9 million, up 15.9 percent.

Sales in Washoe County inched up 1.9 percent but fell 0.5 percent in Carson City.

Statewide, taxable sales of clothing rose 15.6 percent; motor vehicles, 10.7 percent; food and drinking were up 5.1 percent and general merchandise stores were up 2.6 percent.

The department said activity in the construction industry fell 57.6 percent in March statewide.

The sales and use tax yielded $261.8 million for March, a 2.1 percent decrease. It’s a 7.9 percent drop for the nine months of fiscal year 2010.