San Diego Economic Index Increases 0.7% in JulyFriday, August 30, 2013
An index measuring San Diego’s economy increased 0.7 percent in July, the 19th time it’s gone up in the last 20 months.
The latest rise in the USD Burnham-Moores Center for Real Estate’s Index of Leading Economic Indicators for San Diego County was fueled by sharp gains in building permits, consumer confidence, and the outlook for the national economy, as well as smaller rises in local stock prices and help wanted advertising.
The sole negative component of the six was an increase in new unemployment insurance claims
Alan Gin, the University of San Diego economics professor who compiles the data for the index, said the outlook for the local economy remains unchanged from what it was for the past several months: a positive year with solid growth.
However, job growth has slowed in recent months, Gin noted. In July, the net gain of jobs was just below 20,000. That is down from the beginning of 2013, when the net annual job growth was regularly topping 30,000.
The fact that most of the job growth both locally and nationally is in part-time and lower paying positions is also having a negative impact on the economy, he said.
“Consumers don’t have as much income as they normally do in this stage of a recovery and that is adversely impacting consumer spending, which in turn, impacts hiring and investment by firms,” Gin said.
— SDBJ Staff Report