The December figures released this week from a leading economic index point toward continued growth for the Valley’s economy for the next six months.
The San Joaquin Valley Business Conditions Index, produced by Fresno State’s Craig School of Business, registered at 55.6 for December, up slightly from 55.2 in November. The index remains above the 50.0 growth-neutral threshold overall.
“According to our survey results over the last several months, economic growth will remain positive in the months ahead and well above that of the nation’s economy,” said Ernie Goss, research faculty with the Craig School of Business.
“December growth slowed for manufacturers, especially durable goods producers, while construction firms reduced jobs for the month. On the other hand, wholesale trade and business services firms continue to experience healthy growth,” Goss said.
He pointed to improved employment as a driver of the growth.
“Job growth in the San Joaquin Valley area continues to significantly outperform that of the U.S.,” Goss said. “Over the past 12 months, the regional economy has experienced a very strong 2.6 percent growth, which is a full percentage point above the national economy.”
The index is compiled by surveying individuals making company purchasing decisions in Fresno, Madera, Kings and Tulare counties.