Housing to Buoy Southland

Southern California’s economy will grow modestly in the next three to six months, thanks in part to an expected boost from housing construction, according to an indicator to be released today.

Cal State Fullerton said its Southern California index of leading economic indicators rose 0.3% in the second quarter compared with the previous quarter.

Four of the indicator’s seven components were positive, led by a “relatively large” increase in regional building permits, the report said. Also positive were the interest rate spread, regional unemployment and nonfarm employment.

“We’re not expecting an economic slowdown in the next three to six months,” said Cal State Fullerton economist Adrian R. Fleissig, who compiles the indicator.

Among the components with a negative effect was Pacific region consumer confidence.

“Concerns about the future direction of energy prices is certainly affecting consumer expectations,” Fleissig said.

Also negative were the Standard & Poor’s 500 stock index and real money supply.

The index, developed to parallel the national index of leading economic indicators compiled by the Conference Board in New York, projects economic activity for Los Angeles, Orange, San Bernardino, Riverside, Ventura and Imperial counties.