California- Sacramento State professor says 8.7% drop in retail sales ‘probably’ worst seen since Great Depression

At malls and shopping centers across Sacramento, store after store is closed and parking lots are empty. It’s a similar scene across the country and the globe as the COVID-19 pandemic forces many “non-essential” businesses to shut their doors.

That’s why Varshney said it is no surprise that the Department of Commerce retail sales numbers released on Wednesday were way down.

“People were expecting the worst and those numbers look pretty bleak,” Varshney told FOX40.

This week, the U.S. Department of Commerce said retail sales plunged 8.7% in March, which is the biggest drop since the government started tracking that number in 1992.

In January, state sales tax was projected to bring in $28,243,000 to California’s budget. But according to the state Department of Finance, that number will likely drop in a revised budget the governor is set to release in May.

As a result of the tax filing deadline being postponed, tax revenues coming into the state, county and city governments are already likely going to be delayed.

For more information: Fox40News

Fox 40 news
by: Doug johnson
April 16, 2020