Sales tax revenues for Savannah and Chatham County declined last year for the first time in over a decade, suggesting a kink in the area's otherwise rosy economic picture.
Armstrong Atlantic State University economist Michael Toma says the decline, less than a percent, statistically represents a stagnant number and might be subject to "accounting mush," but... "To see the numbers essentially flat from one year to the next is a little surprising to me."
Economic officials describe Savannah as a haven from state and national slowdowns, but the new numbers suggest that even strong manufacturing and port-related sectors are no insurance against anemic sales, an important income source for local governments.
Assistant City Manager Chris Morrill says, he can't explain it. "That's the question," Morrill says. "Unfortunately, it's hard for us to get much detail behind the state numbers."
Some possible explanations? New housing starts were down 20% in the third quarter and single-family housing sales were down about 30%. And the rate of growth in tourism also slowed.
Still, Savannah Area Chamber of Commerce officials describe 2007 as "extremely positive."
