e-EDGE is now available as an RSS feed. [Click here to subscribe to it.]According to “advance” estimates of the Bureau of Economic Analysis released last week, the U.S. economy grew by +3.2% last quarter (seasonally adjusted annual rate or SAAR). This was the third consecutive quarterly increase recorded by BEA since the economy apparently bottomed in the second quarter of 2009. The level of economic activity has grown by +2.7% since then. However, GDP was still -1.0% below the last quarter of 2007 (the recession officially began in December 2007); so the economy is not yet back to its pre-recession level.
Progress was evident in five sectors of the economy during the first quarter:
Four sectors made negative contributions to GDP growth last quarter.
To summarize, the U.S. economy grew during the first quarter. The big "push" came from U.S. households deciding to increase spending at the fastest pace in three years. Of equal importance, many businesses decided to produce more goods, build some inventory, and purchase new equipment. And exports continued to grow. Even so, a few weak spots remain. In particular, state and local governments face severe budget constraints, while nonresidential construction activity is moribund. Still, if conditions continue on their current path, these two weak spots shouldn't derail the economic recovery.
Note: The BEA called its release an “advance estimate” because all of the figures are still preliminary. When preparing its estimates, the BEA did not know for sure what happened to foreign trade, inventories, or construction (residential and nonresidential) in March and had to make some assumptions, which may or may not prove correct. Also, the information on consumer spending during March was still incomplete. We’ll get a clearer picture of the first quarter economy a month from now, but don’t expect the story to change significantly. (Nancy D. Sidhu)
Source: http://www.bea.gov/newsreleases/national/gdp/2010/pdf/gdp1q10_adv.pdf
The Bureau of Labor Statistics released the Employment Compensation Index (ECI) for the first quarter of 2010. The ECI measures the change in the cost of labor after adjusting for employment shifts among occupations and industries.
Compensation costs for civilian workers increased by +0.6% during the first quarter 2010 and by +1.7% year-over-year. Wages and salaries, which make up approximately 70% of compensation costs, were up by +0.4% last quarter while benefits costs rose by +1.1%. A jump in unemployment insurance premiums accounted for some of the benefits increase, while a +4.5% increase in employer costs for care health benefits also contributed.
In the private sector, compensation costs rose by +1.6% for the twelve months ending March 2010 (compared with an increase of +1.9% during the same period last year). Wages and salaries were up by +1.5% while benefits costs climbed by +2.0% as a result of higher costs for health and retirement plan benefits.
Compensation costs for state and local government workers grew by +2.0% between March 2009 and March 2010. Wages and salaries increased by +1.8% and benefit costs climbed by +2.7%.
Wages and salaries increased for almost every industry in the private sector with the notable exception of credit intermediation (banking), which saw wages and salaries fall by -0.8% over the year.
In the Los Angeles-Long Beach-Riverside CSA (combined statistical area), wages and salaries were up by +1.8% for the twelve months ending March 2010, while total compensation increased by +1.5%. (Kimberly Ritter)
Source: http://www.bls.gov/news.release/pdf/eci.pdf/
The PKF data for Southern California’s hotels have recently been released, and the results are a mixed bag. Occupancy rates are up, but room rates are down.
In Los Angeles County, the February occupancy rate came in at 69.3% compared with 67.2% last year. However, the average daily room rate (ADR) declined by -9.0% to $139.34. By area in the County, the highest occupancy rate was the Airport’s 80.3%, though Downtown 2 (hotels not in the Downtown core) came in at 79.9% occupancy. The highest ADR was again found in Beverly Hills at $364.29, but that was down by -12.1% over the year.
Orange County’s February hotel occupancy rate was 65.1%, up from last year’s 63.9%. The ADR declined by -9.1% over the year to $129.47. The highest occupancy rate by area was Costa Mesa’s 72.0%, though the Orange county Airport area was close behind at 71.8%. The highest ADR was found in Huntington Beach at $181.10, but the ADR was down by -11.7%.
San Diego County’s February hotel occupancy rate was 69.5%, up from 67.3% last year. The ADR fell by -9.0% (such a tight range for the three areas) to $146.42. By area in the County, the highest occupancy rate was found in Sports Arena/Old town at 81.1%. The highest ADR for the month was the $203.37 reported for San Diego Bay Areas. (Jack Kyser)
Population estimates are produced annually by the Department of Finance. The State Controller’s Office uses these estimates to calculate the distribution (based on population) of state funds to cities and counties. (Kimberly Ritter)
Source: http://www.dof.ca.gov/research/demographic/reports/estimates/e-1/2009-10/
The PKF data for Southern California’s hotels have recently been released, and the results are a mixed bag. Occupancy rates are up, but room rates are down.
In Los Angeles County, the February occupancy rate came in at 69.3% compared with 67.2% last year. However, the average daily room rate (ADR) declined by -9.0% to $139.34. By area in the County, the highest occupancy rate was the Airport’s 80.3%, though Downtown 2 (hotels not in the Downtown core) came in at 79.9% occupancy. The highest ADR was again found in Beverly Hills at $364.29, but that was down by -12.1% over the year.
Orange County’s February hotel occupancy rate was 65.1%, up from last year’s 63.9%. The ADR declined by -9.1% over the year to $129.47. The highest occupancy rate by area was Costa Mesa’s 72.0%, though the Orange county Airport area was close behind at 71.8%. The highest ADR was found in Huntington Beach at $181.10, but the ADR was down by -11.7%.
San Diego County’s February hotel occupancy rate was 69.5%, up from 67.3% last year. The ADR fell by -9.0% (such a tight range for the three areas) to $146.42. By area in the County, the highest occupancy rate was found in Sports Arena/Old town at 81.1%. The highest ADR for the month was the $203.37 reported for San Diego Bay Areas. (Jack Kyser)
Wednesday, May 12, 2010: International Trade Outlook: L.A. County's Global Economic Ties
Breakfast & Networking: 8:00 a.m. - 9:00 a.m. Program: 9:00 a.m. - 10:30 a.m. At Hilton Long Beach & Executive Meeting Center, Catalina Ballroom (701 West Ocean Boulevard).
Los Angeles County has one of the world’s largest and most dynamic economies, thanks in part to its strong economic ties with nations from around the globe. In the first of an upcoming series of Key Country reports, the Kyser Center for Economic Research will release a special report on China, L.A. County’s largest trading partner. The report which will feature trade connections between China and L.A. County, investments that local companies have made in China, the educational and cultural ties between the two regions, and the challenges and opportunities that lie ahead. Additionally, the LAEDC will present its annual International Trade Trends & Impacts report highlighting the trade activity for the Southern California 5-county region.
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