Retail Sales Per $1,000 of Personal Income in Arizona
Total retail sales should increase at about the same pace as the overall economy, as measured by personal income. However, taxable retail sales in Arizona are generally limited to goods purchased in stores, while consumer spending continues to shift to untaxed services and to untaxed purchases made using the Internet. Therefore, retail sales per $1,000 of personal income in Arizona have trended down since the earliest year of data in 1984. The rate of decrease varies with the economic cycle; the long and deep recent recession caused retail sales per $1,000 of personal income to fall substantially in 2008 and continue to decline through 2010. Because of the deep decline during the recession, retail sales relative to personal income rose in each year from 2011 through 2014, but the cumulative increase over the four years was only 9 percent.