Monthly Economic Report – November Posts Sluggish Economic Recovery

Audit Date: December 27, 2013
Audit Categories
  • Financial
Controller: Alan Butkovitz

Executive Summary

For Immediate Release:
December 27, 2013

Contact: Brian Dries

November Posts Sluggish Economic Recovery
City Controller’s economic report includes review of Philadelphia’s
lower tax revenues & home sales over last year

November 2013 Economic Report

PHILADELPHIA – City Controller Alan Butkovitz today released his latest monthly Economic Report that indicated Philadelphia’s economic recovery pace slowed in November as monthly City General Fund tax revenues fell almost 10 percent over last year.

November’s tax collections totaled $142 million compared to $157.5 million collected in November 2012. The majority of taxes realized decreases from the same month last year including wage, earnings, net profits, business privilege and tobacco.

November’s lower tax revenues mark the first month in fiscal year 2014 (FY14) where monthly totals were lower than those collected in the prior year. The city posted a strong first quarter in FY14 as tax revenues were $31 million above the first quarter of FY13. Although November’s collections were low, the City’s yearly totals are still six percent above last year’s total revenues.

In addition to lower monthly tax revenues, November’s monthly home sales decreased by 11 percent over last November. Home sale totals for November 2013 and 2012 were 795 and 897, respectively.

It was the only month in the last 12 months that realized a decrease from the same month of the prior year. The lower monthly sales performance was also realized across the United States, as rising mortgage rates in September hit year-to-date highs.

The Controller’s economic report is compiled on a monthly basis and includes an Economic Snapshot and Forecast, as well as real estate information and other local statistics. These reports are circulated every month to assist key decision makers in understanding and anticipating local and national economic trends.