The University of San Diego released a report recently stating that the county of San Diego’s index of leading economic indicators progressed further last month. Based on the information released continued economic growth is expected in San Diego.
Based on the report, San Diego’s index improved by 0.2%. According to the USD index that was compiled by Burnham-Moores Center for Real Estate’s renowned economist Alan Gin, this advance was the 14th straight month for the county of San Diego. The main factor for this 0.2% gain was the significant increase in residential units with building permits, which increased by 1.1% based on the Construction Industry Research Board. Another factor for which this improvement is attributed is the rise in the help wanted advertising over the Internet by 0.81%, based on Monster Worldwide. Aside from these, minimal recovery in consumer confidence was also noted by 0.2%, according to the San Diego Union-Tribune. This is a complete reverse from the downhill trend over the last four months.
Job growth also continued during the month of May. There were 8,500 new jobs that have been added, which is 80% more than the previous month. This is the 4th straight month that the San Diego County has recorded gains in employment.
On the downside, there was a decrease in stock prices, based on the San Diego Stock Exchange Index. The 1.09% fall is seen by some economists as a sign of bad things ahead. Investors might be predicting that the economy will not bounce back as expected and may weaken further. Another discouraging note is the claims for unemployment insurance in the county, as reported by the Employment Development Department.
Many economists, however, are still expecting a slow up to a moderate growth for the county of San Diego for the rest of the year. Although it will take a while for the county to fully recover and get back all the jobs that were lost in the economic crisis, the steady advancement is still better than the contrary.
All in all, the state of the National Economy has been noted to increase by 0.71% in the month of May, based on this index of leading economic growth indicators.