Nov. 28--LAS CRUCES -- Ever so slightly, gross receipts tax revenue in Las Cruces is rising, perhaps signaling the start of economic recovery in Do-a Ana County.

Gross receipts taxes collected in the city total more than $5.8 million for the November reporting period, according the latest report released by the New Mexico Taxation and Revenue Department. That's about $200,000 more than was reported in October, and the increase is the third consecutive month that collections have climbed.

City officials and many businesses are taking the modest increases with cautious optimism, especially as the holiday shopping season begins. Residents feel the same way, too, and aren't ready to believe that the worst of a global economic recession is over.

"Unemployment is still pretty high," said Diane Bustos, a Las Cruces secretary. "I saw the other day where the state's unemployment rate is 7.9 percent and that's pretty high compared to where we were a couple of years ago. I know for this year's holiday season, I'm probably going to spend less just to be on the safe side. I'm going to pay more attention to making my dollar

stretch."

But encouraged that gross receipts tax revenues have climbed, Bustos said she's not as cautious as she was a year ago. She has noticed that the price of gasoline isn't as high as it was last year, and there are more people in city stores.

"Last year, people weren't even looking, they were just staying away period," said Bustos, referring to shoppers.

Bustos' perspective is the same that city officials are generally seeing.

"Local consumers appear to be losing some of their hesitancy to spend, but remain cautious," said city Budget Manager Dick Gebhart.

According to the state Taxation and Revenue Department, the $5.8 million in gross receipts taxes represents what the city collected in September. The month was highlighted by the annual The Whole Enchilada Fiesta, which typically stimulates spending.

But Gebhart said it would be wise to take the economic improvement with a grain of salt.

"To date, the revenue picture remains mixed," he said. "Construction and retail trade, the main sources of (the city's economic) growth in the past, remain lackluster while health care has been the main sector posting gains. ... Future months should be generally more in line with actual activity, yielding a clearer picture of local economic conditions."

Mesilla Mayor Michael Cadena said the town has had "unexpected" gains in gross receipts in recent months. For a town government that is trying to wipe out an estimated $20,000 budget deficit, improved gross receipts will be crucial.