San Diego County Economic Indicators Reach Highest Level In December

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 reached its highest level in more than a decade in December, after posting its best individual month in over a year.

The index hit 141.2 in December, beating the previous post-recession high of 140.7 set last April, and tying the mark from August 2006, according to USD professor Alan Gin. By comparison, the recession-era low was 100.7 in March 2009.

The index rose 0.7 percent from November to December, the largest increase since November 2015.

Gin said all six components of the index were higher in the same month for the first time since April 2015, led by strong gains in consumer confidence and the outlook for the national economy.

"The strength and breadth of the increase was impressive and may eventually lead to a readjustment of the outlook for the local economy," Gin said. "For now, the forecast remains for slower growth in 2017 than in 2016."

The professor cited several factors that could adversely impact the local economy this year, including continued interest rate increases by the Federal Reserve, potential trade wars with China and Mexico, slowing growth in China, and political and financial turmoil in Europe.

Despite the worries, consumer confidence in December experienced its largest gain since August 2013 and has increased for six straight months, and the national Index of Leading Economic Indicators also jumped.

For 2016 as a whole, residential construction authorized by local government building permits rose 8 percent in the San Diego area despite a wide divergence in the type of housing. Permits for multi-family projects were up 26 percent, but down 28 percent for single-family homes.

By City News Service / Image via Shutterstock