The Cochise College Center for Economic Research recently completed its analysis of tax receipt data for October sales in Cochise County, released by the Arizona Department of Revenue. The figures shown below are estimates based on transaction privilege tax collections.

Taxable sales in the county's incorporated cities totaled $111.2 million in October. This was up 4.1 percent from October 2005 for inflation-adjusted growth of 2.8 percent. Inflation in the preceding 12 months was 1.3 percent, as measured by changes in the Consumer Price Index from October 2005 to October 2006. Retail sales in the incorporated cities totaled $61.9 million in October, up 5.2 percent from a year prior for inflation-adjusted growth of 3.9 percent.

Restaurant and bar sales in the county totaled $10.2 million, up 23.4 percent from October 2005.

This reflects inflation-adjusted growth of 22.1 percent. Despite a general economic slowdown, restaurant and bar sales in most areas of the county have been strong over the past year. Accommodation receipts in the incorporated cities totaled $2.7 million, up 11.6 percent in the October comparisons. This reflects real growth of 10.3 percent. Accommodation receipts include hotel, motel, and other transient lodging.

October receipts reflect a rebound from slowed sales in this category over most of the past year.

Construction impacts

At the city level, Benson's total taxable sales in October were $8.2 million, up 47.3 percent from October 2005. This reflects astounding, inflation-adjusted growth of 46 percent. Benson's retail sales totaled $4.1 million, up 22.3 percent from a year prior, for inflation-adjusted growth of 21 percent.

The astonishing growth in sales in Benson is related to increased construction in the northwest corner of the county.

There are currently about 20,000 homes planned for the Benson area over the next couple of decades. Following several years of delays, construction in this area has accelerated significantly over the past year.

In Bisbee, total taxable sales in October were $5.8 million, a decrease of 3.5 percent from October 2005. This reflects inflation-adjusted growth of -4.8 percent.

Despite the decline in total sales, Bisbee's retail sales came in at $2.6 million. This was up 15.4 percent from a year prior, reflecting inflation-adjusted growth of 14.1 percent.

Bisbee's restaurant and bar sales in October increased to $678,000, up 27.8 percent from October 2005. This reveals inflation-adjusted growth of 26.5 percent.

Bisbee's accommodation receipts fell to $189,000, down 28 percent in the October comparisons, showing inflation-adjusted growth of -29.3 percent.

The steep decline in Bisbee's accommodation sales likely reflects the departure of workers previously involved in the construction of the city's new wastewater system.

The growth of restaurant and bar sales, despite declining accommodation sales, reflects an increase in local patronage, including visitors from other areas of Cochise County.

A decline in construction, due primarily to the completion of the city's new wastewater system, also contributed to the overall drop in total sales. ROBERT CARREIRA is director of institutional research at Cochise College. Look for his column each Monday in Money. Contact the Center for Economic Research at 515-5486 or by e-mail at cer@cochise.edu. The center's Web site is www.cochise.edu/cer.