e-EDGE is now available as an RSS feed. [Click here to subscribe to it.]The Bureau of Economic Analysis has released preliminary estimates of corporate profits in the first quarter of 2010 (1q2010). The results were quite impressive. Seasonally adjusted, total pre-tax profits from “current production” (which exclude inventory profits and include other adjustments) rose by +5.5% during the 1st quarter from 4q2009. This was the fifth consecutive year-on-year increase and put the level of adjusted profits nearly 38% above the 4q2008 trough. U.S. financial industries’ profits were up by +1.8% (annual rate) in the 1st quarter, while nonfinancial industries’ profitability rose by a respectable +6.0%.
Total corporate profits were well up—by +31.0%--compared with 1q2009. In particular, profits of U.S. financial industries last quarter were up by a huge +77.2% over the year (as the financial crisis dampened 1q2009 profits severely). U.S. nonfinancial industries’ profits grew by +25.7%. Net profits from the “rest of the world” increased by +6.6% over the year. [FYI, rest of the world profits are defined as the difference between U.S. receipts of profits earned in the rest of the world (which grew by +23.8%) and U.S.-based profit payments to companies and residents in the rest of the world (+86.6%).] (Nancy D. Sidhu)
Source: http://www.bea.gov/newsreleases/national/gdp/2010/gdp1q10_2nd.htm
The California Association of Realtors (CAR) recently released their April 2010 report for existing home sales and prices in California. Statewide, sales of existing single-family homes fell by -8.1% compared with April 2009 to 483,830 units (seasonally adjusted, annualized rate). This was the first time sales fell below 500,000 units for the month in 19 months. Meanwhile, the median price jumped by +21.0% to $306,230. On a month-over basis, sales declined by -6.4% in April, but the median price rose by +1.5%.
In Los Angeles County, unit sales during April edged up by just +0.1% over the year, while the median price climbed by +12.7% to $338,970. In Orange County, unit sales advanced at a more robust pace – rising by +15.2% during April. The median price also increased, advancing by +13.7% over the year to $491,120. Compared with March, the median price increased by +3.0% in Los Angeles County but edged down in Orange County by -0.4%.
The Riverside-San Bernardino area continued to struggle in April. Unit sales suffered a steep decline, falling by -24.7% compared with April 2009, but inched up by +2.0% for the month. The median price in the Inland Empire gained +17.3% over the year, rising by +17.3% although compared with March, the median price slipped by -0.5%.
Unit sales in San Diego County were down by -7.2% in April. The median price, on the other hand, was up by +15.2% to $388,480. On a month-over basis, sales dipped by -3.0% as did median price (-1.3%). Ventura County saw unit sales rise by +18.0% in April with an accompanying increase in median price to $442,610 (+12.2%).
In the San Francisco Bay area, unit sales advanced by +5.9% over the year. The area’s median price increased by +32.3% to $583,280.
The CAR reported that the unsold inventory index for all types of homes rose to 5.1 months in April, compared with 5.0 months at this time last year. Demand for foreclosed properties remained strong last month and exceeded the number of distressed homes available for sale. Homes priced at $300,000 or below posted only a 3.3 month supply (the historical average is seven months). (Kimberly Ritter)
Source: http://www.car.org/newsstand/newsreleases/april2010salesandprice/
The total number of housing permits issued in California during April fell by -6.4% to 35,200 units from 38,400 units a year earlier (seasonally adjusted annual rate or SAAR). Single-family home permits declined by -6.1% to 23,200 units while multi-family permits were down by -7.0% to 12,000 units. Over the month, permits for single-family homes fell by –6.5% and the number of multi-family permits declined by -11.8%. In comparing the first four months of 2010 to the same period last year, however, we find total new housing permits issued were up by +17.1% with single-family home permits increasing by +22.0% and multi-family permits rising by +10.0%.
In Los Angeles County, 587 permits were issued in April compared with 270 permits posted a year ago. Permits for single-family homes rose by +26.9% to 236 units, while the number of multi-family units permitted was 351 last month compared with just 84 units in April 2009. Year-to-date, the total number of housing permits issued was up by +13.7%. During the first four months of 2010, single-family permits jumped by +33.1% and multi-family permits rose by +5.2%. (Note: data at the county level are not seasonally adjusted).
The April numbers for Orange County were mixed. Total housing permits issued declined by -17.7% (to 312 units) compared with the same period last year, 177 permits (+60.9%) were issued for single-family homes while the number of multi-family units permitted tumbled by -49.8% to 135 units. On a YTD basis however, total housing permits rose by +18.5%. During the first four months of this year, 462 single-family home permits were issued (+34.3%). The multi-family sector (a nagging thorn in the side of the county’s housing market), edged up by +0.7% to 308 units.
In the Inland Empire, housing permits were up by +18.5% to 452 units in April (2,191 YTD). Permits for single-family homes accounted for 100% of the total last month (no multi-family permits were issued). For the first four months of this year, single-family permits surged by +40.1%, while permits for multi-family residences dropped by -49.1%.
Although, the April permit count in Ventura County was just 8 units (versus 45 in April 2009), four months into 2010, Ventura County residential construction was up by +31.9%. Heading down to San Diego, the total number of units permitted last month was 318 compared to 420 a year ago (-24.3%). Still, the total number of permits issued year-to-date (1,148) was up by +3.1% compared to the same period in 2009.
The results in the Bay Area were all over the map in April. The San Francisco metro area posted 38 permits for the month, bringing the current YTD total to 154 (down by -71.5% compared with the same period last year). In the Oakland metro area, a total of 384 permits were issued in April or 1,190 year-to-date (+56.8%). In the San Jose area, total permits for the first four months of 2010 tripled. So far this year, 550 new housing permits have been issued in contrast to just 176 for the same period in 2009.
Among California’s 28 metropolitan areas, the largest gains made this year thus far in total new housing units, were in the Oakland (+431 units), San Jose (+374 units), Los Angeles (+285 units) and Riverside-San Bernardino (+232 units). (Kimberly Ritter)
Source: http://www.cirbdata.com/
The latest data from the Construction Industry Research Board indicates that nonresidential construction activity in Southern California is still running at a lackluster pace. In Los Angeles County through four months of 2010, industrial permit valuations were lagging last year by -15.9%, office was behind by -63.1%, and retail was down by -28.5%. Hotel permits in the County held at $24.0 million, compared with no activity in the 2009 period. Total nonresidential building permit activity in the County at the four-month mark was off by -3.2%.
The news from Orange County was a tad more positive. New industrial permits were valued at $23.0 million compared with no activity last year. No hotel permits have been issued in the County so far this year. However, office permit values were up by +258.4% over the year while retail was ahead by +61.7%. Total nonresidential activity in the County so far in 2010 was up by +3.7% over last year.
In Riverside County, no industrial permits have been issued so far in 2010. Permits valued at $12.9 million have been issued for hotels compared with none in 2009. Office permits were up by +405.1% over the four month 2009 period. But retail trailed by -2.5%. Total nonresidential permit values in the County so far in 2010 were up by +26.4% over the comparable 2009 period. In San Bernardino County, $15.8 million in industrial building permits have been issued versus none at this time last year. Office permits trailed last year by -52.2%, but retail was up by +1.9%. No hotel permits have been issued yet in 2010. Total nonresidential permit values in San Bernardino County were down by -23.6% from last year.
The news for San Diego County was more upbeat. Office permits values were up by +201.3% and retail was ahead by +20.3%. Permits for hotels valued at $1.1 million have been issued versus none last year. The only laggard was industrial, which was down by -46.1%. Total nonresidential permit values in the county were down by -17.9% over the like 2009 period.
In Ventura County so far in 2010, no permits have been reported for either industrial buildings or hotels. $4.0 million in office permits have been issued compared with none last year. Retail permit values, however, were up by a strong +256.4%. To date in 2010, total nonresidential building permit values were up by +13.0% over last year.
The situation in the none-county Bay Area was quite mixed. To date in 2010, industrial building permit values were up by +352.4% over the year (much of this activity was in Alameda County), while office was ahead by +114.1%. Retail was behind by -51.7%, while no hotel permits have been issued so far. Total nonresidential permit values so far in 2010 were down by -1.0% from the comparable 2009 period. (Jack Kyser)
Source: http://www.cirbdata.com/
April total passenger traffic and air cargo reports are in from Los Angeles International Airport (LAX), Ontario International Airport and John Wayne/Orange County Airport. Both LAX and John Wayne/Orange County airports reported higher levels of passenger traffic compared to a year ago and all three airports were higher with regard to air cargo.
LAX total passenger counts (domestic and international) came in at 4.6 million passengers in April. Domestic passengers numbered 3.4 million and international passengers totaled 1.2 million. LAX experienced a very slight rise of +0.03 percent in total passenger traffic compared to April 2009. Total air cargo tonnage was up by a significant +27.5 percent from April 2009 to April 2010.
Ontario International Airport’s passenger traffic figures were lower, moving down by -2.9 percent in April over the year. However, air cargo tonnage jumped by +7.6 percent from April 2009.
John Wayne/Orange County Airport’s passenger traffic figures were higher when compared to a year earlier, rising by +3.1 percent in April. Meanwhile, air cargo tonnage increased by +1.1 percent over the year. (Ferdinando Guerra)
Source: http://www.lawa.org/welcomelax.aspx
http://www.lawa.org/welcomeONT.aspx
http://www.ocair.com/
Mexico: Mexico’s GDP expanded by +4.3% in the first quarter compared to a year earlier. This was the first time that Latin America’s second-largest economy grew on an annual basis since the third quarter of 2008. The key factor in this transition has been the economic recovery in the U.S., as Mexican exports are overwhelmingly dependent upon American demand. The drug violence within Mexico has had an impact on economic growth over the past months, as many observers have estimated that GDP growth would be 1-2 percentage points higher if there were less drug-related violence. Fortunately, the tourism industry has not been significantly impacted, as the Mexican economy is heavily dependent upon tourism dollars.
Manufacturing and industrial production have seen large improvements over the past three months. Manufacturing rose by nearly +10% in the first quarter on an annual basis. Industrial production in March increased the most since 2006 in March, jumping by nearly +8% on a year-to-year basis.
U.K.: The Office for National Statistics announced this past week that the U.K. economy grew by +0.3% on a quarterly basis. Increases in investment, manufacturing and government spending were the key contributors to growth in the first quarter. Overall investment rose by +1.5% in the first quarter while manufacturing jumped by +1.2%, the largest increase in four years. The increase in manufacturing was mainly attributable to the depreciation of the pound making British exports cheaper. Meanwhile, government spending rose by +0.5% in the first quarter. Overall, expectations are for very slow economic growth in the U.K. over the remainder of the year and into 2011. (Ferdinando Guerra)
Saturday, June 12, 2010: Valley Economic Development Center: Where's the Money? Access to Capital Business Expo
8am - 2:30pm. Sheraton Los Angeles Downtown (711 South Hope St.). Only $10 to register! Registration Includes: Breakfast—Expo—Lunch—Workshops—One on One Consultation.
Join us for a day of Education, Resources & Business Growth! Discuss your financing needs with lenders – schedule a one-on-one consultation. Obtain information from a wide range of business resource providers. Attend workshops where these topics will be discussed by panels of experts.
Tuesday, June 22, 2010: Future Ports: Clearing the Air: Building our future begins now.
7:30am registration. 8:00am - 2:00pm program. Doubletree Hotel San Pedro. FuturePorts Members $99. Non-Members $120 ($140 after June 7). Govt/Non-Profit $70 ($85 after June 7).
The Southern California region depends on the Ports of Long Beach and Los Angeles as their economic engine, and the benefits of that activity can be felt in every job sector. Direct and indirect jobs created by goods movement and the supply chain industry have been negatively affected by the Great Recession of 2008-09. This conference will explore what is in store for jobs in our industry, and what we can do to continue making progress on cleaning the air while building the infrastructure that will support the jobs of our future. Morning Keynote Speaker: Senator Roderick D. Wright, California State Senate, District 25.
REGISTER NOW!
Wednesday, July 21, 2010: LAEDC Mid-year Economic Forecast Update
7:00 a.m. Breakfast & Networking. 8:00 a.m. - 10:30 a.m. Program. Los Angeles Marriott Downtown.
The LAEDC Economic Forecast and Industry Outlook is Southern California’s premier source for in-depth economic information and analysis on Los Angeles County and the surrounding areas. This important mid-year economic update is attended by nearly 400 of the region’s top business, education, civic, and government leaders. The LAEDC’s economic research reports are broadly used by the media, government, and private industry organizations, and have been ranked #1 by the Wall Street Journal.
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