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By now, the depth and far-reaching ripple effects of the nation's recession have become well known.

But new figures from the state Board of Equalization offer early evidence of the economic downturn - a collapse that has since helped fuel a global recession.

Judy Chu, vice chair of the State Board of Equalization, announced Monday that taxable sales in California decreased 3.7 percent during the first quarter of 2008, reflecting the beginning quarter of the recession.

Taxable sales totaled $127.9 billion in the first quarter of 2008, down $4.9 billion from the first quarter of 2007.

That was the third consecutive quarter of declines in taxable sales. Taxable sales have not fallen in three consecutive quarters since 2002. Income growth continued to be much stronger than taxable sales, a trend seen since early 2007.

Sales have likely weathered a significant decline since the the early 2008 numbers were compiled. But how deep the drop has been is anyone's guess.

"Early indications based on preliminary data show that statewide sales will be down this year," Board of Equalization spokeswoman Anita Gore said Monday. "We do see a continuing trend ... we just don't have the numbers."

Los Angeles County's annual decline in first-quarter 2008 taxable sales was 2.3 percent, far less than that of other counties, including Madera County (-15.6 percent), Trinity County (-11.6 percent) and Amador County (-10.6 percent).


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Conversely, Alpine County experienced no decline, while Yolo County dropped just 0.2 percent and Kern County was off by only 0.4 percent.

Los Angeles County racked up more than $32 billion in taxable transactions during the first quarter of 2008, down from $32.9 billion for the same period a year earlier.

Automotive sales - including the sale of new and used vehicles, RVs, and parts and supplies - accounted for $3.7 billion of the first-quarter 2008 numbers.

Retail businesses associated with eating and drinking made up $3.6 billion, and service stations generated another $3.2 billion.

Richard Giss, a retail analyst with Deloitte & Touche, expects further year-over-year declines.

"It would not surprise me at all to see that the numbers are worse," he said. "One of the indicators you get is the retail vacancies. There are a lot of vacancies, especially with the mom-and-pops. They just don't have have the financial wherewithal to last in this type of economic climate."

Southern California's auto sector has taken a heavy hit, Giss said, and jewelry stores are also struggling.

"They are having a heck of a time because that's a totally discretionary buy," he said. "People are still getting married and engaged, but now many people are promising those things for the future."

kevin.smith@sgvn.com

(626) 962-8811, Ext. 2701