Originally posted by | Feb. 29, 2016 discusses the trend of stocks tank in January.
San Diego County’s economy chugged along in January with no overall change, a monthly study from the University of San Diego released Monday shows.
Two categories in the monthly Index of Leading Economic Indicators did show big movements. January had the most help wanted advertising since the recession. Local stocks, however, took a huge drop.
The index from the Burnham-Moore Center for Real Estate looks at different aspects of the local economy to determine its well-being.
Like national stocks, San Diego stocks took a hit in January but it fared worse than national indexes.
Fifty-one companies make up the index, which includes many of the region’s major employers.
Alan Gin, author of the study, said local stocks play a part in San Diego County’s economy because, much of the time, employees own stock and how well their company is doing will affect their spending.
Despite local stocks, the job front looked more promising in January.
Initial claims for unemployment insurance declined for the third month in a row, and help wanted advertising was at its highest level since November 2007, the study said.
Other indicators had minor changes. Residential building permits were up 0.07 percent in January, typically a slow month. Consumer confidence declined 0.14 percent, likely because of the stock market, the study said.
Added together, the overall index had no change from December. It is a contrast to July, August and September when the economic indicators dropped — the first time three months had declined in a row since 2006.
The study reasoned the economy in 2016 could get boosts from low interest rates and gas prices. But, an area of concern is the Chinese economy, which is dealing with a tumultuous stock market, potential real estate bubble, weakness in the financial sector and a restructuring of its economy to a more consumer and consumption-orientated economy.
This article was originally posted by the San Diego Union Tribune and can be found HERE.
