SAN DIEGO - San Diego's Index of Leading Economic Indicators rose 0.2 percent in June, a University of San Diego Economist reported today.

The index has increased each month for the last year, according to Alan Gin, who compiles it. However, June's gain was the smallest monthly change since August 2003.

The outlook for the economy remains positive, but could be affected by the high price of oil, and the subsequent rise in the cost of gasoline, according to the report.

It was estimated that for every 10 cents a gallon increase, consumers in San Diego County spend $7 million more a month on gasoline instead of other purchases, according to Gin.

Initial claims for unemployment insurance fell, but hiring remains weak, according to the report. Help wanted advertising in The San Diego Union- Tribune was down, after 10 months of increases.

In other indicators, building permits were up for single-family units, but the number of units authorized in multi-family homes were down. Consumer confidence and local stock prices were up.

Higher energy prices and interest rate increases caused the National Index of Leading Economic Indicators to turn negative for the first time in 15 months, according to the report.

The index tracks building permits, unemployment insurance, local stock prices, consumer confidence and the national economy to give a snapshot of the local economy and predict where it might be headed. CNS-08-24-2004 10:59