San Diego’s Economy Grows Slowly
Thursday, July 1, 2010
San Diego's economy should grow slowly through the end of the year...but there's concern the local job market isn't bouncing back fast enough.
San Diego's economy should grow slowly through the end of the year, but there's concern the local job market isn't bouncing back fast enough.
The University of San Diego index went up for the 14th straight month, but the increase was a modest two-tenths of a percent.
USD economist Alan Gin, who compiles the numbers, says a surge in building permits fueled the increase. He says consumer confidence, help wanted ads and the national economic outlook also gained ground. However, Gin says stock prices were down sharply and the job market continues to lag behind the recovery.
"If we can get a turnaround in terms of jobs and get this ball rolling it should create a self-reinforcing cycle, in that, people will have more money. They'll go out and spend more and that'll create even more jobs," said Gin.
Gin says the sluggish job market is putting additional pressure on the local housing sector, and that people who have been out of work for a while are struggling to keep their homes.
Gin says some economists fear that could lead to another wave of foreclosures.