San Diego's economy will continue to struggle if the region's index of leading economic indicators are correct. The University of San Diego index dipped again last month. USD economist Alan Gin says a sharp drop in consumer confidence was a major factor in the decline. He says the slumping housing market continues to pull down the local economy. Gin says high gasoline prices are also having an impact.
Gin: What has been really shocking has been the big run-up in terms of gas prices. Gas prices are about 45 percent higher than they were four or five years ago. And actually, if you look at the month to month moves, actually most of that increase has come since, since February."
Gin says the index is down more than one percent for the eighth consecutive month. A decline in consumer confidence and help wanted ads, along with an increase in jobless claims pushed the index down. Building permits, stock prices and confidence in the national economy were actually all up slightly. Gin says the outlook for the local economy is for continued weakness.
