Survey: Valley economic growth slowing

Source: The Business Journal

The San Joaquin Valley Business Conditions index dropped marginally in August but still indicates a growing economy, according to the monthly survey released on Wednesday by Fresno State’s Craig School of Business. The index decreased to 55.4 in August from 55.6 in July—above the growth neutral index of 50—partially due to the lowered unemployment rate. Although each of the four Central Valley counties’ unemployment rates have improved dramatically over the past 12 months, research faculty member Ernie Goss’ prediction of a single-digit percent unemployment rate might not come to fruition. “Last month I indicated that I expected the area's unemployment rate to drop below 10.0 percent before the end of 2013. While this rate is still possible, it is more likely that the jobless rate will not move below this threshold before the first quarter of 2014,” Goss said in a release. Inflation appears to slowing, as the wholesale prices index dropped to 52.5 in August from 58.9 in July. Business confidence improved a little to 51.1 in August from 50.4 in July. The new export orders index dropped to 42.7 in August from an already poor 43.7 in July. Conversely imports rose to 50.5 in August from 47.9 in July.

URL to original article: http://www.thebusinessjournal.com/news/economy/8032-survey-valley-economic-growth-slowing

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