Year over Year Sales and Use Tax Revenue fell in California by 5.54% last month. Florida’s Sales Tax Revenue fell by 7.23% and is declining faster than it did during 2001 Recession. With consumer spending down that much, both states are clearly in recessions. New York grew by 0.29% over the low point reached last February. Texas continued its strong performance, growing by 6.64%.
As discussed in this previous post, these states are the 4 largest states in terms of contribution to GDP. In 2006, California contributed 13.2%; Texas, 8.1%; New York, 7.8%; and Florida, 5.4%. Together they accounted for 34.6% of GDP. Averaged together weighted by GDP contribution, the composite for the 4 states fell by 1.62%. Florida and California are two of the hardest hit states in terms of housing depreciation. If housing prices continue to slide, consumer spending will problably continue to be weak.
As discussed in this previous post, these states are the 4 largest states in terms of contribution to GDP. In 2006, California contributed 13.2%; Texas, 8.1%; New York, 7.8%; and Florida, 5.4%. Together they accounted for 34.6% of GDP. Averaged together weighted by GDP contribution, the composite for the 4 states fell by 1.62%. Florida and California are two of the hardest hit states in terms of housing depreciation. If housing prices continue to slide, consumer spending will problably continue to be weak.
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