Unfilled orders, up twenty of the last twenty one months, increased $12.7 billion or 1.4 percent to $911.5 billion. This followed a 1.3 percent November increase. The unfilled orders-to-shipments ratio was 6.00, down from 6.13 in November. Inventories, up twenty six of the last twenty seven months, increased $0.4 billion or 0.1 percent to $610.1 billion.

This was at the highest level since the series was first published on a NAICS basis in 1992 and followed a 0.4 percent November increase. The inventories-to-shipments ratio was 1.33, down from 1.34 in November.

Shipments of manufactured durable goods in December, up two of the last three months, increased $4.4 billion or 2.2 percent to $207.5 billion, revised from the previously published 2.1 percent increase. This followed a 0.2 percent November decrease. Primary metals, up seventeen of the last eighteen months, had the largest increase, $2.3 billion or 8.7 percent to $29.2 billion. Shipments of manufactured nondurable goods, down two of the last three months, decreased $1.0 billion or 0.4 percent to $251.9 billion. This followed a 0.6 percent November increase. Petroleum and coal products, also down two of the last three months, drove the decrease, down $1.5 billion or 2.1 percent to $71.0 billion.

Unfilled orders for manufactured durable goods in December, up twenty of the last twenty one months, increased $12.7 billion or 1.4 percent to $911.5 billion, revised from the previously published 1.5 percent increase. This followed a 1.3 percent November increase. Transportation equipment, up eleven of the last twelve months, had the largest increase, $10.7 billion or 2.1 percent to $529.7 billion. This followed a 1.6 percent November increase.

Inventories of manufactured durable goods in December, up twenty four consecutive months, increased $1.1 billion or 0.3 percent to $370.0 billion, unchanged from the previously published increase. This was at the highest level since the series was first published on a NAICS basis and followed a 0.5 percent November increase. Transportation equipment, also up twenty four consecutive months, had the largest increase, $1.8 billion or 1.5 percent to $116.4 billion. Inventories of manufactured nondurable goods, down following three consecutive monthly increases, decreased $0.7 billion or 0.3 percent to $240.1 billion. This followed a 0.3 percent November increase. Chemical products, down two consecutive months, drove the decrease, down $1.0 billion or 1.3 percent to $72.5 billion. By stage of fabrication, December materials and supplies increased 0.8 percent in durable goods and decreased 0.4 percent in nondurable goods. Work in process increased 0.3 percent in durable goods and 0.4 percent in nondurable goods. Finished goods decreased 0.2 percent in durable goods and 0.5 percent in nondurable goods.

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Household Survey Data

The unemployment rate declined by 0.2 percentage point in January to 8.3 percent; the rate has fallen by 0.8 point since August.

Among the major worker groups, the unemployment rates for adult men (7.7 percent) and blacks (13.6 percent) declined in January. The unemployment rates for adult women (7.7 percent), teenagers (23.2 percent), whites (7.4 percent), and Hispanics (10.5 percent) were little changed. The jobless rate for Asians was 6.7 percent, not seasonally adjusted.

In January, the number of job losers and persons who completed temporary jobs fell to 7.3 million. The number of long-term unemployed (those jobless for 27 weeks or more) was little changed at 5.5 million and accounted for 42.9 percent of the unemployed.

After accounting for the annual adjustments to the population controls, the employment-population ratio (58.5 percent) rose in January, while the civilian labor force participation rate held at 63.7 percent.

The number of persons employed part time for economic reasons, at 8.2 million, changed little in January. These individuals were working part time because their hours had been cut back or because they were unable to find a full-time job.

In January, 2.8 million persons were marginally attached to the labor force, essentially unchanged from a year earlier. (The data are not seasonally adjusted.) These individuals were not in the labor force, wanted and were available for work, and had looked for a job sometime in the prior 12 months. They were not counted as unemployed because they had not searched for work in the 4 weeks preceding the survey.

Among the marginally attached, there were 1.1 million discouraged workers in January, little different from a year earlier. (The data are not seasonally adjusted.) Discouraged workers are persons not currently looking for work because they believe no jobs are available for them. The remaining 1.7 million persons marginally attached to the labor force in January had not searched for work in the 4 weeks preceding the survey for reasons such as school attendance or family responsibilities.

Establishment Survey Data

Total nonfarm payroll employment rose by 243,000 in January. Private-sector employment grew by 257,000, with the largest employment gains in professional and business services, leisure and hospitality, and manufacturing. Government employment was little changed over the month.

Professional and business services continued to add jobs in January (+70,000). About half of the increase occurred in employment services (+33,000). Job gains also occurred in accounting and bookkeeping (+13,000) and in architectural and engineering services (+7,000).

Over the month, employment in leisure and hospitality increased by 44,000, primarily in food services and drinking places (+33,000). Since a recent low in February 2010, food services has added 487,000 jobs.

In January, health care employment continued to grow (+31,000). Within the industry, hospitals and ambulatory care services each added 13,000 jobs.

Wholesale trade employment increased by 14,000 over the month. Since a recent employment low in May 2010, wholesale trade has added 144,000 jobs.

Employment in retail trade continued to trend up in January. Job gains in department stores (+19,000), health and personal care stores (+7,000), and automobile dealers (+7,000) were partially offset by losses in clothing and clothing accessory stores (-14,000). Since an employment trough in December 2009, retail trade has added 390,000 jobs.

In January, employment in information declined by 13,000, including a loss of 8,000 jobs in the motion picture and sound recording industry.

In the goods-producing sector, manufacturing added 50,000 jobs. Nearly all of the increase occurred in durable goods manufacturing, with job growth in fabricated metal products (+11,000), machinery (+11,000), and motor vehicles and parts (+8,000). Durable goods manufacturing has added 418,000 jobs over the past 2 years.

Employment in construction increased by 21,000 in January, following a gain of 31,000 in the previous month. Over the past 2 months, nonresidential specialty trade contractors added 30,000 jobs.

Mining added 10,000 jobs in January, with most of the gain in support activities for mining (+8,000). Since a recent low in October 2009, mining employment has expanded by 172,000.

Government employment changed little in January. Over the past 12 months, the sector has lost 276,000 jobs, with declines in local government; state government, excluding education; and the U.S. Postal Service.

The average workweek for all employees on private nonfarm payrolls was unchanged in January. The manufacturing workweek increased by 0.3 hour to 40.9 hours, and factory overtime increased by 0.1 hour to 3.4 hours. The average workweek for production and nonsupervisory employees on private nonfarm payrolls edged up by 0.1 hour to 33.8 hours.

In January, average hourly earnings for all employees on private nonfarm payrolls rose by 4 cents, or 0.2 percent, to $23.29. Over the past 12 months, average hourly earnings have increased by 1.9 percent. In January, average hourly earnings of private-sector production and nonsupervisory employees edged up by 2 cents, or 0.1 percent, to $19.62.

The change in total nonfarm payroll employment for November was revised from +100,000 to +157,000, and the change for December was revised from +200,000 to +203,000. Monthly revisions result from additional sample reports and the monthly recalculation of seasonal factors. The annual benchmark process also contributed to these revisions.

Stern And Company
Strategic Communications
702-240-9533
steve @ sdsternpr.com

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Labor productivity, or output per hour, is calculated by dividing an index of real output by an index of hours worked of all persons, including employees, proprietors, and unpaid family workers.

Unit labor costs in nonfarm businesses increased 1.2 percent in the fourth quarter of 2011, as productivity grew at a slower rate (0.7 percent) than hourly compensation (1.9 percent). Unit labor costs rose 1.3 percent over the last four quarters. Annual average unit labor costs increased 1.2 percent from 2010 to 2011.

BLS defines unit labor costs as the ratio of hourly compensation to labor productivity; increases in hourly compensation tend to increase unit labor costs and increases in output per hour tend to reduce them.

Manufacturing sector productivity declined 0.4 percent in the fourth quarter of 2011, as output rose 3.8 percent and hours worked increased 4.2 percent; this is the largest quarterly gain in hours worked since the fourth quarter of 2005 (4.8 percent). Over the last four quarters, manufacturing productivity increased 1.7 percent. Annual average productivity grew 2.8 percent from 2010 to 2011. Unit labor costs in manufacturing increased 1.6 percent in the fourth quarter of 2011 but decreased 1.1 percent from the same quarter a year ago.

In the manufacturing sector, productivity grew 2.8 percent in 2011, reflecting a 4.9 percent increase in output combined with a 2.0 percent increase in hours; this is the largest annual increase in manufacturing sector hours since a 2.3 percent gain in 1994. Unit labor costs in the manufacturing sector fell 1.3 percent in 2011.

Stern And Company
Strategic Communications
702-240-9533
steve @ sdsternpr.com

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In this matter, we arranged a photo shoot with the reporter, as well as a brief interview via conference call (not at all unusual), to which the reporter initially agreed. We opted for a conference call in this case because it would take less time and be more cost effective for the client. Beyond that, as there would be other resources in the story, a “face-to-face” wasn’t really necessary. As an aside, when in the news business, I always preferred the phone for “benign” stories. It was just easier and a time saver.

When we called to confirmed the times for both “meetings,” the reporter said he didn’t want to do a “conference call,” but would show up at the photo shoot, which was an exterior shoot. We said that was not the agreement and there wouldn’t be time.

“Well, I have other resources for this,” the reporter said, to which we responded, “That’s fine, I’m sure they’ll be quite adequate. We’re withdrawing our participation from the story.”

It’s our view that in strategic communications, when working with the media, there needs to be almost absolute trust on both sides. Stern And Company has been in business for nearly three decades and we all have “major
league” news experience. When a reporter reverses his position and isn’t willing to work in that “quasi-partnership,” right or wrong, we see it as sign that the story might be going “sideways,” or at bare minimum, not reflect our client in the light we would best like to see.

Now, the reporter certainly has his job to do, but we have ours, which is to protect our client from inaccuracies and innuendo in the media, both of which have increased significantly in the past few years. While this story may be perfectly fine, we’re not willing to take that chance. After all, newspapers are no longer just birdcage liners; articles remain on the Internet for years.

Discretion, to paraphrase Falstaff in Henry the Fourth, is the better part of valor.

Stern And Company
Strategic Communications
702-240-9533
steve @ sdsternpr.com

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Of the 49 metropolitan areas with a Census 2000 population of 1 million or more, the highest unemployment rates in December were registered in Las Vegas-Paradise, Nev., 12.7 percent, and Riverside-San Bernardino-Ontario, Calif., 12.2 percent. Five additional large areas posted rates of 10.0 percent or more. The lowest jobless rates among the large areas were recorded in Minneapolis-St. Paul-Bloomington, Minn.-Wis., and Washington-Arlington-Alexandria, D.C.-Va.-Md.-W.Va., 5.5 percent each. Forty-six of the large areas reported over-the-year unemployment rate decreases, while three areas registered increases. Las Vegas-Paradise, Nev., experienced the largest unemployment rate decline from December 2010 (-2.4 percentage points), followed by Miami-Fort Lauderdale-Pompano Beach, Fla., and Tampa-St. Petersburg-Clearwater, Fla. (-2.2 points each). The large area with the largest over-the-year jobless rate increase was Chicago-Joliet-Naperville, Ill.-Ind.-Wis. (+0.6 percentage point).

Metropolitan Area Unemployment (Not Seasonally Adjusted)

In December, 66 metropolitan areas reported jobless rates of at least 10.0 percent, down from 110 areas a year earlier, while 125 areas posted rates below 7.0 percent, up from 71 areas in December 2010. El Centro, Calif., and Yuma, Ariz., recorded the highest unemployment rates in December 2011, 26.8 and 23.1 percent, respectively. Seven of the other eight areas with jobless rates above 15.0 percent were located in California. Bismarck, N.D., registered the lowest unemployment rate, 3.2 percent. The areas with the next lowest rates were Lincoln, Neb., and Fargo, N.D.-Minn., 3.6 and 3.7 percent, respectively. A total of 225 areas recorded December unemployment rates below the U.S. figure of 8.3 percent, 143 areas reported rates above it, and 4 areas had rates equal to that of the nation. (See table 1.)

The largest over-the-year unemployment rate decreases in December were registered in Steubenville-Weirton, Ohio-W.Va. (-2.8 percentage points), and Redding, Calif. (-2.7 points). Twenty-seven other areas recorded rate declines of 2.0 percentage points or more, and an additional 139 areas had decreases of at least 1.0 point. Two areas in Washington, Kennewick-Pasco-Richland and Yakima, reported the largest over-the-year jobless rate increases (+1.8 and +1.4 percentage points, respectively).

Metropolitan Division Unemployment (Not Seasonally Adjusted)

Eleven of the most populous metropolitan areas are made up of 34 metropolitan divisions, which are essentially separately identifiable employment centers. In December 2011, Los Angeles-Long Beach-Glendale, Calif., registered the highest jobless rate among the divisions, 11.6 percent. Framingham, Mass., reported the lowest division rate, 4.8 percent, closely followed by Bethesda-Rockville-Frederick, Md., 4.9 percent. (See table 2.)

Thirty of the metropolitan divisions recorded over-the-year jobless rate decreases in December, while three divisions registered increases and one had no change. Miami-Miami Beach-Kendall, Fla., posted the largest rate decline from a year earlier (-2.8 percentage points). Eighteen other divisions reported rate decreases between 1.0 and 1.9 percentage points. Chicago-Joliet-Naperville, Ill., experienced the largest unemployment rate increase from a year earlier (+0.7 percentage point).

In 3 of the 11 metropolitan areas that contain divisions, the ranges between the highest and lowest division jobless rates were 2.0 percentage points or more in December. Boston-Cambridge-Quincy, Mass.-N.H., recorded the largest rate difference among its divisions, 5.6 percentage points (Lawrence-Methuen-Salem, Mass.-N.H., 10.4 percent, compared with Framingham, Mass., 4.8 percent).

Metropolitan Area Nonfarm Employment (Not Seasonally Adjusted)

In December, 239 metropolitan areas reported over-the-year increases in nonfarm payroll employment, 127 reported decreases, and 6 had no change. The largest over-the-year employment increase occurred in Houston-Sugar Land-Baytown, Texas (+75,800), followed by New York-Northern New Jersey-Long Island, N.Y.-N.J.-Pa. (+47,900), Dallas-Fort Worth-Arlington, Texas (+45,700), and Los Angeles-Long Beach-Santa Ana, Calif. (+41,900). The largest over-the-year percentage gain in employment was reported in Columbus, Ind. (+6.4 percent), followed by Casper, Wyo. (+5.9 percent), and Blacksburg-Christiansburg-Radford, Va. (+5.2 percent).

The largest over-the-year decreases in employment occurred in Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md. (-6,300), New Haven, Conn. (-4,100), and Montgomery, Ala. (-3,900). The largest over-the-year percentage decreases in employment were reported in Missoula, Mont. (-6.5 percent), Abilene, Texas (-5.3 percent), and Dalton, Ga. (-4.9 percent).

Over the year, nonfarm employment rose in 32 of the 36 metropolitan areas with annual average employment levels above 750,000 in 2010. The largest over-the-year percentage increases in employment in these large metropolitan areas were posted in Houston-Sugar Land-Baytown, Texas, and San Jose-Sunnyvale-Santa Clara, Calif. (+3.0 percent each), and Tampa-St. Petersburg-Clearwater, Fla. (+2.5 percent). The largest over-the-year percentage decreases in employment occurred in Cleveland-Elyria-Mentor, Ohio, Indianapolis-Carmel, Ind., and Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md. (-0.2 percent each).

Metropolitan Division Nonfarm Employment (Not Seasonally Adjusted)

Nonfarm payroll employment data were available in December 2011 for 32 metropolitan divisions, which are essentially separately identifiable employment centers within a metropolitan area. Twenty-four of the 32 metropolitan divisions reported over-the-year employment gains and 8 reported losses. The largest over-the-year increases in the metropolitan divisions occurred in New York-White Plains-Wayne, N.Y.-N.J. (+48,200), Seattle-Bellevue-Everett, Wash. (+36,900), and Boston-Cambridge-Quincy, Mass. (+32,100). The largest over-the-year decreases in the metropolitan divisions were in Nassau-Suffolk, N.Y. (-9,900), Bethesda-Rockville-Frederick, Md. (-5,700), and Wilmington, Del.-Md.-N.J. (-4,100).

The largest over-the-year percentage increases in employment among the metropolitan divisions were reported in Framingham, Mass. (+3.0 percent), Seattle-Bellevue-Everett, Wash. (+2.7 percent), and Lowell-Billerica-Chelmsford, Mass.-N.H., and Warren-Troy-Farmington Hills, Mich. (+2.2 percent each). The largest over-the-year percentage decreases in employment occurred in Wilmington, Del.-Md.-N.J. (-1.2 percent), Bethesda-Rockville-Frederick, Md. (-1.0 percent), Nashua, N.H.-Mass. (-0.9 percent), and Nassau-Suffolk, N.Y. (-0.8 percent).

Stern And Company
Strategic Communications
702-240-9533
steve @ sdsternpr.com

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Spending on private construction was at a seasonally adjusted annual rate of $529.7 billion, 2.1 percent above the revised November estimate of $518.8 billion. Residential construction was at a seasonally adjusted annual rate of $241.2 billion in December, 0.8 percent above the revised November estimate of $239.4 billion. Nonresidential construction was at a seasonally adjusted annual rate of $288.5 billion in December, 3.3 percent above the revised November estimate of $279.4 billion.

The value of private construction in 2011 was $504.1 billion, 0.7 percent above the $500.6 billion spent in 2010. Residential construction in 2011 was $236.2 billion, 1.1 percent below the 2010 figure of $238.8 billion and nonresidential construction was $268.0 billion, 2.4 percent above the $261.8 billion in 2010.

In December, the estimated seasonally adjusted annual rate of public construction spending was $286.6 billion, 0.5 percent above the revised November estimate of $285.3 billion. Educational construction was at a seasonally adjusted annual rate of $70.6 billion, 0.6 percent below the revised November estimate of $71.1 billion. Highway construction was at a seasonally adjusted annual rate of $84.5 billion, 1.8 percent above the revised November estimate of $82.9 billion. The value of public construction in 2011 was $283.3 billion, 6.5 percent below the $303.0 billion spent in 2010. Educational construction in 2011 was $70.9 billion, 5.3 percent below the 2010 figure of $74.9 billion and highway construction was $78.9 billion, 4.5 percent below the $82.5 billion in 2010.

Stern And Company
Strategic Communications
702-240-9533
steve @ sdsternpr.com

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Bank of Las Vegas lost all but a few hundred thousand dollars of capital last year, according to its latest quarterly filing with federal bank regulators.” Edwards was the former banking reporter for the Las Vegas Review-Journal. Click here for the full story.

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But substantial changes to tax and spending policies are slated to take effect within the next year under current law. So CBO has also prepared projections under an “alternative fiscal scenario,” in which some current or recent policies are assumed to continue in effect, even though, by law, they are scheduled to change. The decisions made by lawmakers as they confront those policy choices will have a significant impact on budget outcomes in the coming years.

CBO’s Current-Law Baseline

CBO projects a $1.1 trillion federal budget deficit for fiscal year 2012 if current laws remain unchanged. Measured as a share of the nation’s output (gross domestic product, or GDP), that shortfall of 7.0 percent is nearly 2 percentage points below the deficit recorded in 2011, but still higher than any deficit between 1947 and 2008. Over the next few years, projected deficits in CBO’s baseline decline markedly, dropping to under $200 billion and averaging 1.5 percent of GDP over the 2013–2022 period.

Revenues

Much of the projected decline in the deficit occurs because, under current law, revenues are projected to shoot up by almost $800 billion, or more than 30 percent, between 2012 and 2014—from 16.3 percent of GDP in 2012 to 20.0 percent in 2014. That increase is mostly the result of of the recent or scheduled expirations of tax provisions, such as those initially enacted in 2001, 2003, and 2009 that lower income tax rates and those that limit the number of people subject to the alternative minimum tax (AMT).

Under current law, CBO projects that revenues will continue to rise relative to GDP after 2014 largely because increases in taxpayers’ inflation-adjusted income will push more income into higher tax brackets and subject more of it to the AMT.

Spending

Outlays in CBO’s baseline projections decline modestly relative to GDP over the next several years before turning up again later in the decade. The modest declines are the result of an expanding economy and statutory caps on discretionary appropriations. The aging of the population and rising costs for health care drive increases in spending in later years.

Projected spending in CBO’s baseline averages 21.9 percent of GDP over the 2013–2022 period. That figure is less than the 23.2 percent CBO estimates for 2012, but it remains elevated by historical standards. As a share of GDP, discretionary spending is projected to decline to its lowest level in the past 50 years by 2022, but that decline will be partially offset by increases in spending for mandatory programs, which are projected to climb from 13.3 percent of GDP in 2013 to 14.3 percent in 2022. Driven by higher interest rates and additional accumulation of debt, net interest costs will grow significantly—from 1.4 percent of GDP this year to 2.5 percent in 2022.

CBO’s Alternative Fiscal Scenario

CBO’s baseline projections are heavily influenced by changes in tax and spending policies that are embodied in current law—changes that in some cases represent a significant departure from recent policies.

CBO’s alternative fiscal scenario shows the budgetary consequences of maintaining certain tax and spending policies that have recently been in effect. That scenario incorporates the following assumptions:

• Expiring tax provisions (other than the payroll tax reduction) are extended [under current law, those expirations will boost individual income taxes in a variety of ways by amounts totaling $3.8 trillion from 2013 through 2022];
• The AMT is indexed for inflation after 2011 [under current law, its parameters are fixed, and the number of taxpayers affected by the AMT will jump from 4 million in calendar year 2011 to 30 million in 2012];
• Medicare’s payment rates for physicians’ services are held constant at their current level [under current law, those rates are scheduled to drop by 27 percent this March and more in later years]; and
• The automatic spending reductions required by the Budget Control Act do not take effect [under current law, they will impose reductions totaling about $109 billion a year starting in January 2013].

Under that alternative fiscal scenario, far larger deficits and much greater debt would result than are shown in CBO’s baseline. Deficits would average 5.4 percent of GDP over the 2013–2022 period, rather than the 1.5 percent reflected in CBO’s baseline projections. Debt held by the public would climb to 94 percent of GDP in 2022, the highest figure since just after World War II.

The Economic Outlook

In part because of the dampening effect of the higher tax rates and curbs on spending scheduled to occur this year and next, CBO expects that the economy will continue to recover slowly, with real GDP growing by 2.0 percent this year and 1.1 percent next year (as measured by the change from the fourth quarter of the previous calendar year). CBO expects economic activity to quicken after 2013 but to remain below the economy’s potential until 2018.

In CBO’s forecast, the unemployment rate remains above 8 percent both this year and next, a consequence of continued weakness in demand for goods and services. As economic growth picks up after 2013, the unemployment rate will gradually decline to around 7 percent by the end of 2015, before dropping to near 5½ percent by the end of 2017.

While the economy continues to recover during the next few years, inflation and interest rates will remain low. In CBO’s forecast, the price index for personal consumption expenditures increases by just 1.2 percent in 2012 and 1.3 percent in 2013, and rates on 10-year Treasury notes average 2.3 percent in 2012 and 2.5 percent in 2013. As the economy’s output approaches its potential later in the decade, inflation and interest rates will rise to more normal levels.

Many developments could produce economic outcomes that differ from CBO’s forecast. For example: •The forces that have restrained the economy’s recovery could fade more rapidly than anticipated. •A significant worsening of the banking and fiscal problems in Europe could spill over to U.S. financial markets and greatly weaken the economy here. •Changes in fiscal policy that diverge from those in CBO’s baseline could affect economic growth.

CBO’s alternative fiscal scenario represents one possible set of changes in fiscal policy. Under that scenario, real GDP would be noticeably higher in the next few years than it is in CBO’s baseline economic forecast: CBO estimates that, with such changes in policy, real GDP in the fourth quarter of 2013 would be between 0.5 percent and 3.7 percent greater than in the baseline forecast, and that the unemployment rate would be between 0.3 and 1.8 percentage points lower. But, over time, the resulting larger deficits would reduce private investment in productive capital and result in real GDP that would fall increasingly below the level in CBO’s baseline projections.

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For the fiscal year that began July 1, 2011, taxable sales are up 8.5 percent through November.

Clark County sales were up 8.6 percent. Washoe County sales were up 5.3 percent.

Fourteen of Nevada’s seventeen counties recorded an increase in taxable sales for November 2011 compared to November 2010: Carson City, Humboldt and White Pine Counties recorded a decrease.

The Motor Vehicle and Parts Dealers saw a 9.1 percent gain in November 2011 over November 2010, and the Food Services and Drinking Places were up 7.5 percent over the same period.

Bryan Wachter, director of government affairs for the Retail Association of Nevada, said the report is great news for the state economy.

“This validates that we saw a healthy Black Friday leading into holiday spending,” he said. “We’ll look for December taxable sales to kind of confirm that it was an ongoing kind of Christmas spending pattern as opposed to a one-time event, which we don’t think it was.”

The big jump in auto sales is good news as well because it shows increased consumer confidence in making large purchases, Wachter said.

Increased consumer spending, increased confidence and increased discretionary spending will generate more jobs and ultimately help turn the construction industry around as well, he said.

“It’s very encouraging to see other parts of the economy showing improvement,” Wachter said.

The report showed that a number of other taxable sales categories saw strong growth as well: Clothing and Accessories Stores were up 14.8 percent; Utilities, up 197.3 percent; and Merchant Wholesalers – Durable Goods, up 19.6 percent.

The Construction Industry Classification was down again however, off 15.9 percent over November 2010. Nevada was hard hit by the housing market collapse.

But all other major taxable sales categories saw increases in the report, with Home Furniture and Furnishings up 15 percent, and Accommodations up 12.3 percent.

Gross revenue collections from sales and use taxes amounted to $266.3 million in November 2011, which represents an 8.8 percent increase compared to November 2010 and a 7.4 percent increase through the first five months of fiscal year 2012.

The general fund portion of the sales and use taxes collected amounted to $67.3 million, which represents an 8.5 percent increase compared to November 2010.

Compared to the May 2011 Economic Forum projections and based on department analysis, the general fund portion of the sales and use taxes is approximately 2.7 percent or $8.9 million above their forecast for fiscal year 2012 through November.

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The monthly Consumer Confidence Survey, based on a probability-design random sample, is conducted for The Conference Board by Nielsen, a leading global provider of information and analytics around what consumers buy and watch. The cutoff date for the preliminary result was January 19.

Says Lynn Franco, Director of The Conference Board Consumer Research Center: “Consumer Confidence retreated in January, after large back-to-back gains in the final two months of 2011. Consumers’ assessment of current business and labor market conditions turned more downbeat and is back to November 2011 levels.  Regarding the short-term outlook, consumers are more upbeat about employment, but less optimistic about business conditions and their income prospects.  Recent increases in gasoline prices may have consumers feeling a little less confident this month.”

Consumers’ appraisal of current conditions was less favorable in January. Those claiming business conditions are “good” decreased to 13.3 percent from 16.3 percent, while those stating business conditions are “bad” increased to 38.7 percent from 33.5 percent. Consumers’ assessment of the labor market was also less positive. Those saying jobs are “plentiful” decreased to 6.1 percent from 6.6 percent, while those claiming jobs are “hard to get” increased to 43.5 percent from 41.6 percent.

Consumers’ short-term outlook was slightly weaker than it was last month. The proportion of consumers anticipating business conditions to improve over the next six months decreased to 16.6 percent from 16.8 percent, while those expecting business conditions will worsen increased to 15.1 percent from 13.4 percent. Consumers’ outlook for the labor market, however, was moderately more favorable.  Those expecting more jobs in the months ahead increased to 16.2 percent from 14.0 percent, while those anticipating fewer jobs declined to 19.5 percent from 20.2 percent. The proportion of consumers expecting an increase in their incomes declined to 13.8 percent from 16.3 percent.

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