1st-Quarter Retail Sales Rise 8% Over 1988 : Commerce: The growth rate of taxable sales in the county was higher than for California as a whole, final figures from the state tax board show.

Orange County consumers spent $6.2 billion on taxable retail sales in the first quarter of this year, an 8% jump over the first three months of 1988, according to final data released Monday by the State Board of Equalization.

Statewide, consumers spent $61 billion, 6.4% more than for the first quarter of last year but still making for the slowest growth rate in more than two years. When adjusted for inflation, the taxable sales saw a real growth rate of just 2.4% in constant dollars.

One factor affecting the state results overall was the slight increase in new-car sales, one of the largest retail sales categories. These rose a scant 3.9% over the comparable period last year. State analysts attributed the slowdown to a general slump in the auto industry.

Sales at the state’s service stations and restaurants were up 4% and 4.6% respectively, growth rates comparable to those of past quarters but still slightly below those of other categories, said David Hayes, research analyst with the Board of Equalization in Sacramento.

Specialty stores and building material sales did better than average. Specialty store sales advanced 11.3% for the quarter, and those in building materials, which includes furniture and appliance stores, advanced 9.5%.

In Orange County, Anaheim once again led the cities here in taxable sales--$703.1 million in the first quarter. Next were Santa Ana ($629.1 million), Costa Mesa ($503.1 million), Irvine ($449 million) and Orange ($426.7 million).

Because California taxable sales information is dated by the time it is released, state analysts warn that final conclusions should not be drawn from it. Moreover, a single quarter’s performance is not a reliable indicator of future trends.

Statewide, the growth rate is the smallest since the last quarter of 1987, for which a 6.4% increase was also posted. That quarter included the October stock market crash. The crash, according to state analysts, was probably a major contributor to a temporary slump in retail sales growth.

With no comparable cause to point to for the first quarter of 1989, state analysts say, it is far too early to gauge whether the first-quarter data points to a downward trend. “Since we don’t have anything to point to to say why the first quarter is down, we can’t tell whether this is the first sign of a recession or not,” Hayes said.

Moreover, interpreting results for the third and fourth quarters this year will be complicated by the San Francisco earthquake. “We know the earthquake could distort (data) . . . and will have a major effect, but we don’t know yet what it will be,” Hayes said.

For that reason, Hayes said, the state is unlikely to have meaningful data about California’s economic performance until mid-1991.

TAXABLE SALES TRENDS

Taxable retail sales in Orange County continued to grow in the first quarter of 1989.

1st qtr. Retail Stores Sales All Outlet Sales 1984 $2,697,200 $4,199,178 1985 2,898,220 4,577,824 1986 3,078,829 4,869,041 1987 3,416,830 5,405,157 1988 3,623,242 5,739,787 1989 3,929,322 6,199,433

Taxable sales in Orange County’s largest municipalities for first quarter of 1989

City Retail Store Sales All Outlet Sales Anaheim $384,982 $703,149 Buena Park 144,635 200,621 Costa Mesa 395,842 503,191 Fullerton 219,881 282,563 Garden Grove 209,957 282,087 Huntington Beach 301,116 370,915 Irvine 230,325 449,075 Newport Beach 174,493 248,741 Orange 268,011 426,795 Santa Ana 401,246 629,139 Tustin 108,023 191,125 Westminster 149,434 170,813

Source: State Board of Equalization