North Dakota taxable sales show growth

In contrast to other states suffering from the nationwide recession, North Dakota continues to blossom in most areas, the state’s latest indicators of economic strength show North Dakota – and, especially Fargo – showed strong signs of growth during the first quarter of 2010 based on taxable purchases and sales reported to the state tax commissioner’s office.

Statewide taxable sales during the first three months of 2010 totaled

$2.6 billion – up 2.65 percent, or $67 million, from the same period in 2009.

The increase is due in large part to strong sales in the retail industry and in part by the energy sector in western North Dakota.

“This report is very encouraging, especially in light of what is occurring across the country with the recession that is affecting so many other states,” state Tax Commissioner Cory Fong said during a news conference Tuesday at Fargo’s West Acres Shopping Center.

Fargo showed some of the most significant growth, representing more than a third of the state’s overall growth from the same quarter in 2009.

Retail sales in Fargo represented more than a quarter of the statewide growth in early 2010.

Fargo’s overall taxable sales totaled about $460.3 million in the first quarter of 2010, marking an increase of 6.6 percent, or $28.3 million, over the same period in 2009.

“This represents real growth for Fargo,” Fong said.

Part of the reason for Fargo’s increase is because severe winter weather and a record flood in the first quarter of 2009 resulted in lower retail sales, said West Acres CEO Brad Schlossman.

Nonetheless, Schlossman predicted 2010 could be a record year for the shopping center’s retail sales based on current projections.

“It’s good news that the economy here is not suffering like the rest of the country,” Schlossman said.

Fargo City Commissioner and retail business owner Brad Wimmer said the city should be proud of its economic strength.

“We don’t toot our horn enough,” he said. “Things are on the upswing, and we should be proud of that.”

The manufacturing, transportation and warehousing, and utilities industries were the only sectors among the 15 industries reported that saw a loss in early 2010 over 2009.

The results from the manufacturing sector aren’t surprising, though, because it’s an example of at least one area where the nationwide economy hit North Dakota.

Several national companies, such as Bobcat, cut jobs and production in the state within the past year.

Tags: daily updates, north dakota, taxable sales