Lagging Growth in Taxable Sales Sign of O.C. Slowdown
In a further indication that Orange County’s once-robust economy has slowed, the county’s growth in taxable sales lagged behind the state as a whole during the first quarter of 1990 compared to the same period last year, according to figures released by the State Board of Equalization.
Taxable transactions grew by a modest 5.8% rate, compared to 7.8% for all of California, the board reported. Retail sales grew by 4.4% in the county, while they rose 6.7% in the state.
“To me, it’s sort of in line with the general retail sales slowdown we have been having,” said Phillip Vincent, vice president and economist for First Interstate Bank in Los Angeles.
“Orange County has definitely been slowing this year,” he added. “Employment has not been growing as fast as last year. It’s pretty much in line with national trends.”
The county has been particularly hurt by cuts in defense and construction employment. Slowdowns in those two key areas are the main reasons why Orange County grew at a slower rate than the state, he said.
The first quarter was not altogether gloomy, he said, noting that at least the rate of growth was higher than the state’s rate of inflation.
All told, the county recorded $6.5 billion in taxable sales during the first quarter ended March 30, compared to $6.2 billion for the same period last year. Retail sales were $4.1 billion, compared to $3.9 billion for the first quarter of 1989.
Cities posting increases in taxable sales during the period were Anaheim, Brea, Buena Park, Fountain Valley, Fullerton, Huntington Beach, Irvine, Laguna Beach, La Habra, La Palma, Los Alamitos, Mission Viejo, Orange, Placentia, San Clemente, San Juan Capistrano, Seal Beach, Stanton, Tustin, Villa Park, Westminster and Yorba Linda.
Cities that showed decreases included Costa Mesa, Cypress, Garden Grove, Newport Beach and Santa Ana.
ORANGE COUNTY TAXABLE SALES Retail sales increased 4.4% in Orange County in the first quarter, and total taxable sales increased 5.8%. But the growth in Orange County lagged the rest of the state, which saw retail sales increase 6.7% and total sales 7.8%. The following are sales in Orange County’s largest retail centers.
(In thousands of dollars)
1990 1989 1990 1989 City Retail Retail Total Total Anaheim $371,097 $384,982 $705,734 $703,149 Buena Park 149,923 144,635 203,356 200,621 Costa Mesa 393,873 395,842 501,234 503,191 Fountain Valley 123,115 67,203 150,280 90,790 Fullerton 223,715 219,881 295,828 282,563 Garden Grove 210,236 209,957 278,537 282,087 Huntington Beach 301,693 301,116 372,460 370,915 Irvine 234,949 230,325 481,655 449,075 Mission Viejo 102,070 78,770 120,645 89,537 Newport Beach 178,671 174,493 237,721 248,741 Orange 286,642 268,011 432,417 426,795 Santa Ana 368,749 401,246 583,124 629,139 Tustin 144,948 108,023 195,578 191,125 Westminster 160,261 149,434 179,896 170,813 Orange County 4,101,615 3,929,322 6,564,678 6,199,433
Source: State Board of Equalization
