Swenson: Gas sales revenue down 10%

September 21, 2020
News

David SwensonDavid Swenson, research scientist, was interviewed for a Sept. 19 Telegraph Herald story, "Gas sales plummet by 10.6% during pandemic, may impact future infrastructure projects."

Dave Swenson, an Iowa State University economics professor, said from August of last year to August this year, U.S. gas sales have shrunk by 10.6% due to the fact that people are not commuting to work, taking vacations or going out in general. In turn, this impact will be felt by the state as well as counties and cities throughout the area who receive a percentage of gas sales as part of the Road Use Tax Fund, which goes toward funding roads, bridges, sewers and other infrastructure needs.

“There will be a 10% reduction or more in the amount that is distributed into the cities and counties and state,” Swenson said. “It will definitely set back funding and planning for roads and bridges and highways.”


WHO Radio, "Report: Iowa's economy in slow, steady COVID-19 recovery,' Sept. 22

Swenson says the larger, more economically diversified cities in the state should have an easier time making a comeback, while mid-sized cities that have a lot of manufacturing may lag behind.

Swenson does not believe there will be a dramatic improvement, but that the pace of recovery will be slow. He says agriculture tends to temper economic ups and downs. He says food processing and food production also are stable during tougher economic times. He says, however, durable goods manufacturing can be more susceptible to economic downturns.


Swenson recently shared his observations on COVID-19 impacts on the “Back to Business Iowa” podcast from Iowa State University Extension and Outreach Sept. 22.


Tyler Jett, Des Moines Register, about the increase in first time claims for unemployment this week.

Sue Danielson, WHO Radio, about the state of the Iowa economy.

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