BRUNSWICK

Retail sales at Brunswick-area businesses in August were 8 percent higher than the same month in 2012, showing strength across categories and buoying hopes for a strong holiday season.

Figures provided by the Office of Policy and Management, a unit of state government, show taxable retail sales jumped from $63.6 million in August 2012 to $68.4 million in August 2013.

For the year, taxable retail sales have topped $444.7 million, compared to $427 million for the same period in 2012 — a 4 percent rise. The totals reflect sales in the Brunswick Economic Summary Area, which includes Brunswick and 26 neighboring cities and towns, including Bath and Topsham.

State economist Amanda Rector said taxable sales are running strong statewide — good news for budget officials charged with coming up with some $70 million in tax loophole closures and other efficiencies to keep the 2014-15 biennial budget in balance.

The Legislature passed temporary increases to the sales and meals-andlodging taxes last session which went into effect Oct. 1.

“Looking at August 2012 versus August 2013, all the different categories were up, with building supplies and automobile sales leading the pack,” Rector said. “Lodging also had a good increase over the previous year. Categories with slower growth were food stores and general merchandise, which includes everyday purchases. Building supplies and auto sales are sensitive to interest rates, which are low right now.”

Auto sales in the region were up 11 percent in August over the yearago period.

Frank Goodwin, president of the Goodwin Motor Group, said that pace “is pretty much spot on for our Chevrolet store.”

“The economy is coming back,” he said. “We are slowly recovering from the Naval Air Station closure. That hit pretty hard. But our best month of the year was August. We had a very good August, and September and October have not been bad. Interest rates look very attractive right now and it looks like they’re going to hold a while longer.”

Goodwin said he’s seen “exceptional” growth at the high end of the market.

At his two Land Rover dealerships, one in Scarborough and the other in Bedford, N.H.: “the big ones seem to be the most popular,” he said, “and they sell in the $120,000 to $130,000 range.”

Building supply sales shot up 13 percent in the Brunswick ESA. But sales have been much brisker at Hancock Lumber on Church Road.

“We’re up 37 percent year over year,” said Bob Morissette, the general manager. “There’s a lot more construction than we’ve seen over the last couple of years.”

For Hancock, that translates to sales of more lumber, doors, windows and other building materials.

“Most of our business is contractor-driven,” Morissette added. “With building permits up, there’s more work for the contractors we support, which generates more work for us.”

Building permits tracked every Wednesday on The Times Record Business page show September permits valued new Brunswick projects at nearly $1.3 million, compared to just $242,000 in September 2012.

Freeport also has notched higher, with $2.5 million in permits issued in September, compared to $2.4 million in September 2012.

Building permits are considered a reliable gauge of construction activity, though the data can be volatile, with big swings from quarter to quarter reflecting the seasonality of the industry.

Business also has been good at The Brunswick Inn, a 16-room bed and breakfast in downtown Brunswick.

While the lodging and restaurant category jumped 9 percent for the ESA, The Brunswick Inn said it posted sales that were up 12 percent in the first quarter of 2013 from 2012 and up 13 percent in the second quarter.

“Our revenue comes from room sales for travelers, plus local and regional people spending on parties that we host — weddings, birthday parties, rehearsal dinners,” said owner Eileen Hornor. “We have had a fair number of people coming in from Boston on the train. They like Brunswick because they can land right in the center of town and walk to everything – restaurants, shops, museums and Bowdoin College.

“Brunswick has its own little niche and is known now as an eating destination,” she noted. “There are numerous restaurants here and they seem to be doing well. I sometimes have trouble making table reservations for our guests.”

State sales tax figures show that Brunswick-area restaurant revenues have increased 8 percent so far this year over 2012, to $12.1 million.

Hornor said she expects to see no impact from the increase in the state’s lodging sales tax, which rose from 7 percent to 8 percent on Oct. 1.

“We do a lot of business with the college,” she said. “Bowdoin parents are not going to stop visiting their son or daughter because the tax went up.

“We’re higher-end and rooms rent for $150 to $220 a night. People spending that kind of money are not going to worry about a small tax increase.”

JAY FINEGAN is a Times Record correspondent based in Freeport.