ECONOMY: Index shows weakness
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Battered by high gas prices, a continued real estate slump and a wave of gloomy economic news, consumers have dragged down the region's economy to its lowest point in several years, according to an economist's index.
The University of San Diego's Index of Leading Economic Indicators fell to 121.0 points in April from 122.7 in March. The 1.4 percent drop was led by a 5.7 percent decline in an index of consumer confidence, though most other indicators pointed toward continuing economic weakness, according to USD economist Alan Gin.
"Worries about inflation beyond gas prices can now be added to the mix of bad economic news," Gin wrote in his report.
Flagging consumer confidence can translate into weaker spending on a range of items from apparel to furniture to cars and trucks.
Fewer builders obtained permits for home starts and more workers applied for unemployment insurance. Moderating the index's fall were modest gains in local stock prices and the influence of a stronger national economy over the last month.
Regional economists have been watching employment numbers with a particularly sharp eye, particularly since numbers from the state government showed that the region's economy failed to create more jobs than were lost between March 2007 and March 2008. Job creation was stronger in April, but only slightly, Gin noted.
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