County’s Economic Index Still Rising, Even as Pace of Job Gains Slows
- Sep 05, 2013
San Diego County’s economy seems to taking a steady upward course as a host of indicators continue to improve, if at a slower pace than earlier in 2013.
According to the USD Burnham-Moores Center for Real Estate’s economic index for July, the county’s indicators improved 0.7 percent to 127.5, its highest level in more than four years. That marks the index’s 11th consecutive increase and 19th in the past 20 months.
Building permits rose 1.25 percent in July, and consumer confidence posted a 1.4 percent increase. Meanwhile, the San Diego Stock Exchange Index rose 0.73 percent.
While the county is still adding jobs, the pace of those gains appears to be slowing. About 19,900 jobs were added in July 2013, considerably fewer than earlier in 2013, when the monthly tally regularly exceeded 30,000. The index suggests that policy issues, such as the expiration of the payroll tax cut and the sequester, could be contributing to the slowdown.
Another hint that improvement in the job market is slowing is the 0.77 percent month-over-month decline in the index for initial unemployment claims. Additionally, a large portion of San Diego County’s new jobs are part-time and low-wage.
Chart courtesy of hribar.com