Although Danville unemployment remains high — 14.6 percent in March — several signs point to economic improvement.
Total first quarter taxable sales in Danville were slightly down by 2.7 percent from first quarter taxable sales last year, according to the Virginia Department of Taxation. Yet, that’s still better than Virginia, where total taxable sales decreased by about 3.8 percent from first quarter last year to the first quarter this year.
“Even though Danville’s unemployment rate is much higher than in Virginia, the retail sales over the past year have been tracking with the state and, in fact, Danville is doing a little better,” said Chris Chmura, president and chief economist of Chmura Economics & Analytics in Richmond.
Additionally, building permits increased 23 percent from March last year to March this year, Chmura said.
That could show why building material and garden equipment dealers saw a $2.1 million — 29 percent — increase in taxable sales from first quarter last year to first quarter this year.
Chmura said that increase could also be attributed to new homeowners taking advantage of the first-time homebuyers tax credit.
Initial unemployment claims are also down 60 percent from a year ago and approach pre-recession levels.
“That’s a very good sign suggesting the labor market is improving,” Chmura said.
General merchandise sales stayed steady increasing from $57.7 million to $58 million from first quarter 2009.
Food and beverage taxable sales declined by $2.9 million or 12.4 percent from first quarter last year to this year. People switching to generic grocery items or cutting out some grocery products could be the reason for the reduced sales, Chmura said.
Danville auto sales were down 0.6 percent from a year ago, she added. Spending on furniture or home furnishings (down 5 percent) and electronics and appliances (down 32 percent) also decreased.
Sales for higher dollar items should rebound as the economy recovers, Chmura added.
“It’s great to have affirmation of what we’re starting to see in this region,” said Laurie Moran, president of the Danville Pittsylvania County Chamber of Commerce. “While everyone recognizes that the economic recovery will be a slow process, it is encouraging to see that we are making strides in the right direction.”
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