Jul. 26--Consumers spent less in casinos and shops in the last year and are putting their money into savings and paying off their credit cards, local economists say.

That is good, except consumer spending makes up about 70 percent of the gross domestic product and is responsible for 80 percent of jobs.

"Consumers cannot lead economic recovery this time," said William Gunther, professor of economics and director of the Bureau of Business and Economic Research at the University of Southern Mississippi. He sees high unemployment continuing into 2010, prompting people to continue saving instead of spending.

Mississippi is one of 48 states facing a shortfall this year in part because of declining sales tax revenue. Sales tax is a major source of revenue and the state fiscal year ended June 30 with sales tax payments down in 9 of the 11 Coast cities. Bay St. Louis had a 24 percent gain in sales tax revenue and Gautier less than 1 percent.

As they put together a budget for the next fiscal year that begins in October, Long Beach officials start with 15 percent less in sales tax revenue, amounting to $245,000. Waveland saw an 11 percent decrease, or a loss of $309,000 in tax revenue for the year.

Biloxi was hit with a double punch, seeing its sales tax revenues slide and the income from the city's eight casinos drop.

"Overall we're 12.63 percent off on gaming revenue since the fiscal year began on Oct. 1 and 7.2 percent off sales tax revenue," said Biloxi Mayor A.J. Holloway. "That comes to about $2 million in revenue we're having to do without."

With one casino, Gulfport won't take such a big hit on casino revenue, but sales tax revenue declined $1.8 million since last year.

Sales are back up at Prime Outlets in Gulfport, said manager Pam Meinzinger, with the Independence Day weekend showing a 16 percent increase over last year and a big surge in business from the recent Mississippi Municipal League convention on the Coast.

"Hopefully it's an indication tourism is coming back," she said. About 40 percent of their customers are local, 40 percent from Louisiana and the remaining 20 percent are tourists.

A large Microsoft convention in New Orleans brought international customers to the outlets two weekends in a row.

They specifically came apparel shopping, she said.

Back-to-school shopping has started and the tax-free shopping July 31-Aug. 1 is expected to provide a big boost in sales. "They're looking for values," Meinzinger said.

Brian Sanderson, president of the Gulf Coast Business Council, said other cities will soon see a boost in revenue.