By Jim Cline
The December report of the Washington State Economic and Revenue Forecast Council,contains some mildly good news. The highlights of the report include:
- Economic impacts of Hurricane Sandy were likely reflected in weak personal consumption data but not Bureau of Labor Statistics employment numbers.
- November U.S. employment grew by 146,000 jobs; September and October employment data were revised down by a total of 49,000 jobs.
- Growth in real GDP for the third quarter was revised up to 2.7% (SAAR) due to faster inventory accumulation.
- Washington employment continues to grow at a moderate rate.
- Housing is looking increasingly positive.
- Regional inflation is cooling on slower rent growth.
- Major General Fund-State revenue collections for the November 11 – December 10, 2012 collection period were $72.7 million (4.3%) higher than the November forecast.
- Revenue Act collections were $39.4 million (4.4%) higher than forecasted and other revenue was $33.4 million (4.1%) higher.
- Some of this month’s positive variance was due to the timing of payments, so the variance will be at least partially reversed next month. The $20 million positive variance in real estate excise tax collections, however, should remain.
