An index measuring San Diego’s economy rose 0.6 percent in October, the fifth consecutive month it’s increased, signaling solid growth at least through the end of 2015.
The USD Burnham-Moores Center for Real Estate Index of Leading Economic Indicators increased to 129.9, compared to 127 in October 2013.
Alan Gin, the USD economics professor who compiles the index, said the improving local labor market (civilian employment grew by 55,000 over the year) should give consumers confidence to spend extra money. Consumer spending accounts for more than two-thirds of gross regional product.
Other recent developments that should boost consumer spending are the big drop in gas prices, and a $1 increase in the minimum wage, Gin said.
In October, five of the six components that go into the index increased. The gains were in the unemployment claims (fewer, measured as a positive), the outlook for the national economy, the local consumer confidence rate, the amount of help wanted ads, and local stock prices. Only the issued number of residential building permits, which fell 1.72 percent, was a negative number.