The Economic Data Global Express (e-EDGE)

v.6 n.34       Released Aug. 26, 2002
Produced by the Los Angeles County Economic Development Corporation as a public service to the global community.

SAVINGS RATES LOWER IN MOST INDUSTRIAL COUNTRIES

     Dramatic changes have occurred in savings versus spending in most advanced industrial countries over the past ten years.  This is the finding of the Organization for Economic Cooperation and Development (OECD), a Paris-based "think tank".  Based on the percentage of disposable (after taxes) household income, the savings rate of 15 of the19 countries in the survey declined from 1991 to 2001.
     Three groups can be identified on the basis of their savings rate in 2001:
     (1) 5.0% or less:  New Zealand 0.3% (5.2% in 1991);  United States, 1.6% (8.0% in 1991);  Finland 3.0% (7.7% in 1991); Australia 3.5% (6.5% in 1991); Canada 3.5% (13.0% in 1991); Sweden 4.5% (3.0% in 1991);  and Denmark 5.0% (11.0% in 1991).
     (2) 10.0% or less: Austria 5.2% (14.8% in 1991); U.K. 5.5% (10.0% in 1991); Norway 7.5% (8.5% in 1991); Portugal 9.0% (17.0% in 1991); Switzerland 9.0% (10.0%); Germany 10.0% (13.0% in 1991); and the Netherlands 10.0% (7.5% in 1991).
     (3) Over 10.0%:  Japan 10.4% (15.0% in 1991); Italy 11.0% (18.0% in 1991); Spain 11.5% (13.0% in 1991); Belgium 12.5% (18.0% in 1991); and France 16.0% (13.5%).
     Savings as a share of household disposable income actually increased, between 1991 and 2001, in only four countries in the survey--France, the Netherlands, Norway, and Sweden. The biggest declines in savings rates occurred in Austria, Canada, Italy, and Portugal.  In the United States, the savings rate of households tumbled from 8.0% a decade ago to only 1.6% today, during a period which included the "boomy" expansion  of the late 1990s (as well as a run-up in stock markets).
     How significant are the results of this survey by the OECD? They may not be near the top of the priority list for many policymakers.  However, countries with low savings rates tend to need steady inflows of foreign capital and must cultivate the kind of economic environment and regime to remain attractive to foreign investors.  (Ken Ackbarali)
 

E-COMMERCE SALES ROSE

     U.S. e-commerce retail ("e-tail") sales rose from $9.9 billion in 1Q02 to $10.2 billion in 2Q02, the first time it broke the $10 billion mark for a non-holiday quarter (i.e. 4th quarter).  E-tail sales during the 2Q were 24.2% above a year ago.  It has been growing at double-digit year-over-year rates since the data collection began in 1999.  Its share of total retail sales fell slightly from 1.3% in 4Q01 and 1Q02 to 1.2% in 2Q02.  Many online-and-store combo ("bricks-and-clicks") are gaining ground quickly because of better customer service (e.g., product returns or exchanges, in-store pickup, quick local delivery, etc.).  Online-only merchants are looking for partnerships or switching more to service-oriented businesses that do not involve physical products.  Some online pioneers such as Amazon have found a niche market in providing e-commerce infrastructure to existing retailers.
     E-commerce retail sales data, however, do not fully reflect the growth of online sales.  Some of the fastest growing sectors do not fall into the retail category.  Online travel bookings are rising as airlines try to cut out the middlemen (i.e. travel agents) by selling more directly to customers.  In fact, Orbitz, an online travel site started by some airlines, has started linking directly with airlines and bypassing the Global Distribution System (GDS) through which travel agents and most websites book airline reservations.  Some websites are also helping airlines to fill those last remaining seats.  In any event, customers, both leisure and business, can now easily compare prices and options before booking, and sometimes find better deals than what they can get from travel agents.  Another growth sector is the sale of used items.  This has helped break the monopoly of many on-campus book stores.  Artists and recording companies are concerned over the practice of "buy-burn-and-sell" (buy the new or used music CD, burn a copy on one's PC, and then resell the original CD online) which they claim is reducing the number of new CD sales and allowing piracy to spread.  Technology will force many industries to revise their marketing and sales models as well as get more aggressive on intellectual property rights.  (George Huang)
PR: http://www.census.gov/mrts/www/current.html
 

JULY CONTAINER DATA -- UP

     The port of Long Beach reported its July container numbers, with loaded import containers (in TEUs) up over the year by 19.9%, while the loaded export container count slipped by 9.6%.  The total number of TEUs moved at POLB in July increased by 19.2% to 450,000.  The two San Pedro Bay (Long Beach and Los Angeles) ports had a fairly good July, with loaded import containers up by 14.5%.  However, export container activity declined at both ports, down by 6.7% over the year.  The total number of containers moved during July at the twins was up by 13.8% to 945,690, the third month in a row of 900,000+ TEU volume.
     According to the Journal of Commerce, activity at other West Coast ports was also strong in July, indicating no significant diversion of cargo to East Coast ports or Canada due to unsettled labor conditions.  Seattle and Tacoma both reported nice increases in container volume, but activity at the port of Oakland was flat.  Negotiations between the ILWU and the PMA are scheduled to resume today (8/26).  (Jack Kyser)
 

LOCAL HOUSING MARKET STILL STRONG

     California's resale housing market continues to be strong, according to the California Association of Realtors.  Statewide housing resale in July increased 1.3% from June and were 7.5% higher than a year ago.  The median price of single-family homes sold in California last month was $323,700, 0.1% higher than in June and 21.0% higher than a year ago.  In comparison, the median price of condos was $248,520, up 2.9% from June and 20.7% from a year ago.
     In LA County, the median single-family home sale price rose by 1.9% to $286,070, which is 17.0% above the year-ago level.  Unit sales rose by 4.0% and were 1.2% higher than a year ago.  Orange County's median price was $432,630, up 1.1% from June and 20.3% from a year ago.  Sales fell by 12.1% in July but were 8.0% higher than a year ago.  The median price for the Riverside-San Bernardino area was $181,150, up 1.5% from June and was 13.4% above the year-ago level.  Sales were 1.9% higher than in June and 3.4% higher than a year ago.  Ventura County's median price of $395,710 was 9.4% higher than in June and 16.9% above the year-ago level.  Sales fell by 4.2% in July and were 1.8% below the year-ago level.
     Up north, the market was a bit cooler in terms of price increases.  The San Francisco Bay's $539,940 median price was 2.1% lower than in June but 12.2% higher than a year ago.  Sales were 7.2% lower than in June but 12.4% higher than a year ago.  Santa Clara County's median price of $564,000 was 1.9% lower but 6.7% higher than a year ago.  Sales activity was 11.8% lower than in June but still 11.6% higher than a year ago.
     At $584,720, the South Coast of Santa Barbara had the highest median resale price in the State.  But that price was 7.8% lower than a year ago, and sales of those expensive homes were 32.8% lower than a year ago.  Looking for cheap housing?  You'll have to go to the High Desert area which has an $131,020 median resale price in July.  (George Huang)
PR: http://www.car.org/index.php?id=MzExNDI=
 

A NEW CSU OPENS

     The new California State University Channel Islands (CSUCI) opens its doors to transfer students today.  Next fall, its first freshman class will enter its gates.  CSUCI is the first public four-year university located in Ventura County.
CSUCI website: http://www.csuci.edu
 

NEW ON OUR WEBSITE: BUSINESS RESOURCE SEARCH TOOLS

     LAEDC has launched its "Business Resources Search Tools" on the redesigned LAEDC website (http://www.laedc.org).  It serves as an online business resource search engine that targets the specific business needs of a firm or an individual based on their responses to pre-set questions.  This is just another way through which LAEDC seeks to serve the needs of businesses and the general community.  Individuals using the system will then find a list of public and private institutions/organizations dedicated to providing those specific services that they are looking for.  The list provides short descriptions, contact information, and a direct link to the institutions' websites.  The database can also provide would-be students a listing of educational programs for a specific industry.  This database is available 24-hours a day, and your privacy is totally protected.  Please visit LAEDC's website at http://www.laedc.org and click on the orange-colored "Business Resource Search Tools" button on the left-hand side.  Please also report all bugs or corrections to cflor@laedc.org .
 

NEED MONEY?  MAYBE WE CAN HELP...

     LAEDC presents "Money Match LA," an all-day lending and educational conference designed to give local business owners the chance to access the different types of capital solutions available in LA County.  Many lenders with different requirements and focus will be at this conference ready to lend you a hand (or money).  Other business service providers will also be available to help with any questions you may have.  Register early to sign up for a 30-minute one-on-one session with a lender or financial service provider who can serve your capital needs.  The conference is at LA Convention Center on next Thursday, Sept. 5, from 8am to 3pm.  The cost is $45 (or $35 if not requesting lunch).  Please visit http://www.moneymatchla.com for registration and other information.
 

AeA FINANCING CONFERENCE

     The American Electronics Association (AeA) presents a conference focusing on financing.  Issues related to financing and the current trends will be discussed.  AeA members will have opportunities to meet with potential investors.  The conference will be held at the Skirball Cultural Center on Wednesday, Oct. 9th.  Please visit http://aeanet.org/events/lavn_capsourcesconf.asp for more information
 

HOLIDAY NOTICE

     LAEDC offices will be closed on Monday, Sept. 2, in observance of Labor Day.  e-EDGE will be released on Tuesday, Sept. 3.
 

7TH ANNUAL EDDY AWARDS DINNER -- A night to share in the lives of some of the great visionaries of our time.

     The Eddy Awards are in recognition of excellence in economic development.  The Eddy Award recipients this year have all played an essential role in the evolution of the new downtown LA --they have changed its landscape and made it rich with culture, architecture, opportunity, entertainment and spirit.  More than anything, they've given Los Angeles the vitality necessary to become the thriving metropolitan center that anchors the economy surrounding it.  Please join us on October 10th at the new Cathedral of our Lady of the Angels when the LAEDC awards seven outstanding honorees: Eli Broad, Timothy J. Leiweke, James A. Thomas, Cardinal Roger Mahony, Andrea L. Van de Kamp, Stephan D. Smith and Tonian Hohberg.  Please visit http://www.laedc.org/events/7th_eddy.shtml for more information.
 

TRADE SHOWS LISTINGS (Repeat announcement)

     LAEDC is now compiling a comprehensive listing of trade shows in Southern California.  Please send us such information.  Thank you so much.
     Our current listing includes fashion/apparel, textiles, shoes, home furnishings & giftware, and manufacturing.  It's available at http://www.laedc.org/trade_shows.html
 

QUICK STATS:

* Calif Assn of Realtors: California existing home sales for 7/02: +1.3% (6/02: -13.8%)
* Calif Assn of Realtors: California median home sale price for 7/02: +0.1% to $323,700 (6/02: +1.5% to $323,380)
* Calif Assn of Realtors: LA County existing home sales for 7/02: +4.0% (6/02: -14.8%)
* Calif Assn of Realtors: LA County median home sale price for 7/02: +1.9% to $286,070 (6/02: +2.1% to $280,740)
* Census: US exports for 6/02: +1.7% to $82.0 billion (5/02: +0.8% to $80.7bil.)
* Census: US imports for 6/02: +0.5% to $119.2bil. (5/02: +2.0% to $118.5bil.)
* Census: US trade deficit for 6/02: $37.2bil. (5/02: $37.8bil.)
* Census: US e-commerce sales for 2Q02: +3.7% (1Q02: -11.6%)
* Census: US new home sales for 7/02: +6.7% to 1,017,000 annual units (6/02: -2.6% to 953K a.u.)
* Natl Assn of Realtors: US existing home sales for 7/02: +4.5% to 5.33 million annual units (6/02: -11.1% to 5.10 mil.a.u.)

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