San Diego’s economy is still growing strong based on the 0.09 percent rise in January’s USD Index of Leading Economic Indicators.
The increase was the largest monthly rise in the index since November 1997. The advance was led by gains in local stock prices, help-wanted advertising, and reduced claim filings for unemployment insurance (reported as a positive effect).
Five of the index’s six components rose during the month, with the only decline in the number of new building permits issued.
Alan Gin, the USD economics professor who compiles the index, said the region’s apparent bright economic outlook is clouded by two potential problems: the sharp increase in oil and gas prices, and the rise in interest rates.
Each factor could dampen consumer spending, and boost the costs for doing business, but it is not certain whether these would result in slowing down the regional economy, Gin said.