If the recession is over, why aren't we seeing state sales tax receipts rising?  If the economy is 70% consumption, how can the economy be growing when retail spending is still going down?

Every month I do a Google News Search for "state sales tax receipts" to find the latest numbers being reported by the states.  There's a great site that compiles all of the stats but it is always 4 months behind in crunching the numbers and getting out their report.  News stories give the most current information.  I also don't think that state treasurers can manipulate the stats too much unlike some of the other government stats that come out.

So here are some recent news stories about sales tax receipts. Just about every story about sales tax for October show a decrease from the same period in 2008, some by large amounts.  Remember October 2008?  At the very beginning of the month we were told that the economy was on the edge of collapse if we didn't get the $800 billion TARP passed.  So it's not like October 2008 was a month that was an unusually positive  month. Negative comparisons to that month should indicate that spending has really slowed down.

Georgia: -18.2%. 

The amount of revenue the Peach State pulled in from various taxes plunged 17.8 percent in October...sales tax revenue (down 18.2 percent)

Missouri: -24.4%.

The biggest drops last month were in sales taxes (down 24.4)

Illinois: -15%

The steepest drop continues to be in sales tax collections, which were down 15 percent, or $90 million, from the October 2008 collections

Iowa: -9.1%

Of foremost concern was an 18.2 percent drop in sales tax receipts -- half of which could be attributed to calendar-related issues -- that were "worrisome," Robinson said.

Texas: -12.5%

Sales tax collections have been declining statewide since February, according to a news release from Combs' office. October's collections totalled $1.52 billion, which was down 12.5 percent from October 2008

Nevada: -24.1%

Statewide taxable sales for August 2009 of $3,076,350,687 represents a 24.1% decrease over August 2008

Rhode Island: -6.6%

Sales-tax collections fell by $19.77 million, or 6.6 percent, to about $278.6 million

Massachusettes: -5.5%

Sales taxes came in at $404 million for the month, $60 million more than during October 2008. But state officials cautioned that the boost was not a sign of increased retail activity but rather the result of a higher tax rate and an expansion of the tax to cover more products.

State Revenue Commissioner Navjeet K. Bal said in a prepared statement that had it not been for the changes, revenue for the category would have been down 5.5 percent from October 2008.

Arkansas: -8.4%

Gross receipts, mostly from sales tax revenue, totaled $163.1 million, a $15 million drop from last year and $6.9 million, or 4.1 percent, below forecast

California: -9%

while sales taxes were about 9 percent off.

Kentucky: -4%

Sales and use tax receipts were down about 4 percent.

Tennessee: -7.8%

Sales tax collections were $38.6 million less than the estimate for October. The October growth rate was negative 7.80 %

 Virginia: -5.4%

Sales taxes fell by 5.4 percent for the month, reflecting retail activity in September

Colorado: -8.8%

Sales-tax collections came in 8.8 percent lower than the year before, while individual income tax revenue fell by 11.2 percent, according to the Colorado Department of Revenue

Maryland: -5.4%

Sales tax receipts fell 5.4 percent in October and are down 7.5 percent for the year

Maybe GDP went up 3.2% in the 3rd quarter but it makes me question whether that is actually a reliable indicator on what's actually happening in the economy.

Can we actually have a jobless recovery along with a spendingless recovery?

 Edit:  The retail sales number for October came out and showed increased retail sales.  So what gives?  How can sales be up yet sales taxes collected be down.  Here a good explanation on how the retail sales reports don't take in account stores that close.  Very interesting and it makes you question just how much confidence you can put on the reported numbers.