Economic Index Shows Slight Drop Last Month In SD

Analysts noted that rising gas prices could negatively impact the local economy.

SAN DIEGO COUNTY, CA – The University of San Diego Burnham-Moores Center for Real Estate's Index of Leading Economic Indicators for San Diego County fell 0.2 last month due to a sharp drop in residential building permits issued, as well as modest downturns in help wanted advertising and local stock prices, according to figures released Thursday.

That's the index's first drop in 18 months, according to professor Alan Gin, who compiles data and issues the monthly report.

Economists usually look for three consecutive index changes to signal an upcoming turning point, so it remains to be seen if April's decrease is a quirk or sign of things to come, Gin said.

Find out what's happening in Del Mar-Carmel Valleyfor free with the latest updates from Patch.

April's overall drop was offset by minor gains in consumer confidence and the national economy, as well as fewer claims for unemployment benefits.

The seasonally adjusted unemployment rate in San Diego County was 3.1 percent in April, down 3.2 percent from March and 4.1 percent from April 2017.

Find out what's happening in Del Mar-Carmel Valleyfor free with the latest updates from Patch.

Outlooks appear to be strong through the end of the year, though rising gas prices could negatively impact the local economy, Gin said.

Heading into Memorial Day weekend, gas prices were about 70 cents higher than a year ago. That means San Diegans are spending an extra $70 million on gas compared with last year, Gin said, leaving fewer dollars for restaurants, retail shops and other attractions.