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Thursday, Mar 28, 2024
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San Diego Economic Index Down Slightly in May

An index tracking San Diego’s economic health showed the region in May lost nearly all gains made the previous month as hiring slowed and local stock prices dropped.

It was the first decline in eight months for the index, which is published by the University of San Diego Burnham-Moores Center for Real Estate.

Countywide indicators tracked for the index include the number of authorized residential building permits, initial claims for unemployment insurance, stock prices, consumer confidence, help wanted advertising and the national economy.

Five of six indicators were down. The one bright spot was initial claims for unemployment insurance, which remained positive.

Still, the May index, 140.4, was down only 0.3 percent down from April, which recorded the index’s highest level in nearly 10 years.

The weakest component was help wanted advertising, used as a proxy for hiring plans and for the seventh month running, consumer confidence shrunk.

“This is difficult to explain, given that the unemployment rate, gas prices, and interest rates are all down, which should be positive for consumers,” wrote USD Professor Alan Gin, author of the monthly report.

He warned against taking the one-month measurement as evidence of sustained downturn — at least not yet.

Economists generally look for three consecutive changes to signal a potential turning point, so the drop “is not alarming at this moment,” Gin said.

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