On some Fridays, the news isn’t good. But there is always something pointing toward better times ahead.
-State tax revenues are rebounding according to a recent report from the Nelson A. Rockefeller Institute of Government. Revenues increased 4.5 percent in the third quarter and 6.9 percent in the fourth quarter of 2010 compared with the same quarters in 2009. The fourth quarter performance is the strongest growth since the second quarter of 2006, indicating “new strength in state tax revenues.” States will still need to make budget cuts, but increasing revenues will mitigate the deficit problems. Click here to view the press release.
-Retail sales increased a hefty 1.0 percent last month while core sales, which exclude autos and gas, increased 0.6 percent. Compared with a year ago, total and core sales increased 8.9 and 5.1 percent respectively. Gas prices will be an issue going forward, but consumers are active again.