O.C. Taxable Sales Expected to Rise Strongly Again in ’97

Tucked away in Chapman University’s recent economic update is a forecast for another good year for taxable sales. Chapman economists expect that Orange County’s taxable sales will grow 6.3% this year, to $34.3 billion.

In 1996, the county’s taxable sales jumped 7.7%, to $32.3 billion, the biggest increase in seven years.

Most product categories are expected to register gains similar to those of last year. But the slight decline in the overall rate of growth is largely due to one sector--autos. Sales of new and used cars will rise 3.8% this year, to $3.71 billion, Chapman predicts. That represents a slowing from the pace set in 1996, when car sales jumped 7.6% to $3.58 billion.

“The numbers you’re seeing in 1997 are not bad,” explained Kevin Allen, executive director of the Orange County Automobile Dealers Assn. Auto sales have risen steadily for about five years, he said, in response to the general improvement in the economy, growing consumer confidence and county residents’ continuing infatuation with sport utility vehicles. A 3.8% gain on top of last year’s big increase “seems realistic to me,” Allen said.

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Patrice Apodaca covers economic issues for The Times. She can be reached at (714) 966-5979 and at patrice.apodaca@latimes.com.