November 11, 2024
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Retail sales show minimal growth; merchants not alarmed

BANGOR – Maine’s taxable retail sales levels have not experienced the bounce some analysts were expecting once summer – and tourist season – arrived.

Instead, the numbers were in the negative column in June compared with the same month last year, and sales for April through June showed minuscule growth.

The numbers reflect what people are saying about their shopping habits this summer. There is no 4 percent or 5 percent increase in spending budgets that analysts suggest is a sign of a healthy economy.

“[We’re spending] about the same as last year,” said Ken Bourgoin of Topsfield, who was shopping Saturday at the Bangor Mall with his wife, Debra, and son, Brandon.

“Things haven’t changed for me that much,” said Laurie Babineau of West Enfield.

Automobile sales showed the most growth, up 5 percent from April through June, after experiencing double-digit percentage reductions in the first three months of the year. Taxes paid on automobiles account for 20 percent of the state’s General Fund revenue.

Other sales particularly tied to the summer season, such as restaurants, lodging and building supplies, grew by up to 2 percent. Consumer sales did not grow at all.

Merchants aren’t too concerned, said Jim McGregor, executive vice president and director of government affairs for the Maine Merchants Association.

“I haven’t heard any alarm expressed,” he said.

McGregor said the fractional growth could be blamed somewhat on the weather.

“Summertime in Maine is always iffy,” he said. “If you get rain, people can’t go do activities like go to the beach. So they go to the malls and go shopping. We haven’t had much rain this summer.”

Michael Allen, an analyst with Maine Revenue Services, said he believes the state is experiencing growth, but not at the levels of last year when the economy was starting its slowdown. The April-through-June figures this year show some improvement over earlier this year, he said, but it’s still a “sluggish economy.”

“We just see consumers cutting back,” Allen said. “We hope they’re not cutting back too much.”

Allen and others in state government are hoping people will spend some money when their federal tax rebate checks arrive.

Allen said the state will not realize what kind of impact the rebate checks will have on the economy until mid-October.

“What little I’ve heard is retailers in general are looking forward to [the rebates], that people are likely to spend it,” McGregor said.


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