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Show BuasiinLess Activity Up 13.7' In Garfield C0 Business activity in Garfield County, as measured by sales and use tax receipts, totaled $28,658,000 last year, an increase of 13.7 percent over 1986. This was reported by Utah Foundation, the private research organization in their regular analysis of business activity in communites throughout Utah. The report emphasized that the change was based on gross sales volume before a 3.6 percent allowance al-lowance for inflation last year. Gross taxable sales volume in Garfield County totaled $25,211,000 in 1986, $23,413,000 in 1985, $26,083,000 in 1980, and $6,199,000 in 1970. For the state as a whole, business busi-ness activity in Utah declined for the third consecutive year. Gross sales volume dropped by 1.5 per- cent in 1987. In addition, the purchasing pur-chasing power of the dollar was down by 3.6 percent. Thus, when an adjustment is made for inflation, the total reduction in the effective sales volume amounted to 5.0 percent per-cent last year. In contrast to the Utah experience, experi-ence, personal consumption expenditures expen-ditures throughout the U.S. rose by 6.0 percent last year. Even after allowance al-lowance is made for inflation, personal per-sonal consumption expenditures were up by 1.9 percent in 1987. Thus, it is clear that business activity in Utah lagged behind that of the nation as a whole. Foundation analysts point out, however, that there are some recent signs that the Utah economy may be improving. Although business activity was down for the year as a whole, it was up by 1.2 percent in the fourth quarter of 1987. Furthermore, Fur-thermore, unemployment in the state has declined and personal income in-come has continued to grow. Total sales volume in Utah during dur-ing the 1987 calendar year was $12.2 billion. This was equal to about 65 percent of the total personal per-sonal income of the state for the year. In 1978, sales volume was equal to nearly 80 percent of personal per-sonal income. In other words, Utahns currently are spending a much smaller proportion of their personal income on taxable items than they did in the late 1970s. More of their income now probably is going to meet other obligations (interest payments, taxes, housing costs, medical payments, repayment repay-ment of debt, etc.) that are not subject to the sales and use tax. The Foundation report shows that between 1970 and 1978, Utah business activity climbed by 78 percent, or an average 7.5 percent per year after an adjustment for inflation. in-flation. Positive economic growth was recorded in each of these eight years. Between 1978 and 1987, on the other hand, adjusted businss activity ac-tivity in Utah declined by 4.8 percent. per-cent. Negative economic growth was registered in six of these nine years. The strong economic showing by Utah during the 1970s was mainly due to rising energy prices and expansion in Utah energy production. pro-duction. The weak Utah economy during recent years, on the other hand, is largely a reflection of weak energy prices and reduced energy production. This slowdown in business activity ac-tivity has greatly complicated the problems facing state and local governments in Utah. The sales tax is a major source of revenue for the state as well as for many Utah cities. Last year, the state trimmed back on expenditure authorizations and enacted the largest tax increase in the state's history in order to keep the state budget in balance. Many local governments also were confronted with severe financial problems at the local level. |