Brighter Outlook for San Diego Economy

San Diego’s economy seems to be on the rise thanks to a growing construction agency and a steadily improving job market.

Alan Gin, an economist from the University of San Diego, collected the information for the San Diego region’s index of leading economic indicators, which rose almost a full point last month. He explained that the change resulted from a boost in multi-family building permits and less first-time unemployment claims. The economic recovery is expected to continue throughout the area.

“I think we’ll have a good job growth,” Gin said. “I think the housing market will continue to be strong. And as a result, I think the unemployment rate is going to drop locally. It’s already down to about 8 percent.”

The only indicator that fell over the past month, according to Gin, was consumer confidence. He postulates that the decrease is a result of rising gas prices, new payroll taxes and political gridlock.

traducción español

PayPal Co-Founder Launches New Business

Co-founder of PayPal Max Levchin is on to the next big thing. He has just launched a new business called Affirm that will compete in the mobile payments business. Affirm’s goal is to help shoppers to complete online purchases more quickly and easily with smart phones and other mobile devices.  Affirm wants to streamline the mobile checkout process online. They say that they have actually managed to bring the online buying process down to two taps on the smartphone screen.

For first time users there is a third step since users need to log into their Facebook accounts and accept the Affirm application. After that, Affirm explains that users will only need to tap the Affirm button on the participating merchant website and then confirm the order.

Affirm has explained that users have 30 days to pay for their purchases and they make their money by charging participating merchants a small fee.

Levchin certainly has quite a resume behind him. Having founded PayPal with Peter Thiel, he was the Chief Technology Officer there for four years before PayPal was acquired by eBay. He also designed and built PayPal’s online security and fraud-prevention systems which have both been leaders in the field.

traducción español

Finance Ministers Meet in Brussels to Discuss Economic Pitfalls

As the European crisis continues, financial leaders are seeking ways to gain crisis-management momentum in an effort to avoid future political pitfalls.

Ministers from across the region are now meeting in Brussels  to debate the options of aiding Cyprus and Greece during this chaotic time.

Chancellor Angela Merkel’s council chairman Wolfgang Franz said: “We don’t know yet how we’re going to get out of the crisis. If the crisis is a marathon, we’ve got two-thirds of the course behind us. But the last third is always the hardest.”

Italian 10-year bonds increased to a year-to-date high of more than 4.5%, while the euro fell 2% against the U.S. dollar. The currency change came after European Central Bank President Mario Draghi expressed his concerns regarding the euro’s strength and its effect on recovery.

“The exchange rate is not a policy target, but it is important for growth and price stability,” Draghi said. “We want to see if the appreciation is sustained, and if it alters our assessment of the risks to price stability.”

Businesses and Sales Predictions for 2013

This video highlights the optimism that many businesses have for the financial year ahead. In a new survey from the National Association for Business Economics, they found that respondents expect to hire more people in the next quarter than they did in the April 2012 survey. More firms also said that they expect wages to rise. Learn more about the survey and about what the National Retail Federation has found about sale predictions for the year ahead.

China’s Economy Shows Signs of Recovery

China’s economy has finally reached a turnaround after a prolonged rough patch. Exports and domestic demand are both showing signs of recovery, and the country is buzzing as a result.

This weekend, data including figures for industrial production, fixed-asset investment, retail sales and overall economic output will be released, revealing the expansion of what is already the second-largest economy in the world.

Retail sales have also increased significantly. Liu Licai, a merchant in southern China, explained that her shelves have been emptying so quickly that she is forced to place additional orders with suppliers.

“Business has gone up by more than 10 percent in the last several month,” she said.

Situations like that of Ms. Liu have been keeping factories busy. As a result, employment rates are increasing, while construction sites show new signs of life and markets grow across the country.

Fiscal Cliff Negotiations Stalled at the Moment

As January 1st 2013 approaches, with its automatic tax-hikes and draconian budget cuts looming ever more real, negotiations to find an equitable solution are getting more heated and volatile. With the delay in progress has come the threat from the Republican leadership to take measures into their own hands and bring its own bill to the floor of the House of Representatives.

Yet even among Republicans this bill, known as “Plan B,” evokes internal disharmony as hardline Republicans do not agree with the tax hikes for the group of earners making $1 million or more which is included in the Republican proposal, a necessary compromise to avoid a veto from President Obama.

Obama did not understand what was delaying the talks which will hopefully reach a reasonable compromise between Obama’s position and the Republican viewpoint on how to avoid the coming “fiscal cliff.” The President told Boehner, the Republican Speaker of the House and the chief negotiator for the Republican side, that he should stop worrying about scoring “a point against the president” or having him make concessions, “just for the heck of it.”

“It is very hard for them to say yes to me,” Obama said at a news conference in the White House. “At some point, you know, they’ve got to take me out of it.”

Fiscal Cliff Causes Rise in American Eagle Coin Purchases

One of the side effects of the fiscal cliff fears has been the purchase of gold coins. Many news sources have reported that November sales of U.S. American Eagle gold coins have reached their largest sale point in the last 14 years. Buyers are purchasing these now as a result of President Obama’s reelection, as a result of the fiscal cliff fears and as a result of the sharp price movements that occurred in early and late November. Purchases are often made in person, or done through the web.

Bullion dealers have also noticed more high net worth individuals buying gold coins in volume and taking possession of them.  As reflected on the U.S. Mint’s website, 131,000 ounces of American Eagles sold in November, which it triple the sales they had last November and the strongest showing since 1998. The silver coin sales for American Eagle doubled in November moving from 1.384 million to 3.135 million ounces.

Certainly, for buyers interested in coins for investment purposes, reading site reviews is a helpful way to decide where to purchase these items. ICCoin Reviews, International Coin Reviews and others can offer insights into their products and recommendations about the best investments to be making at the moment.

In addition to being a sound investment, coin sales serve as a fascinating barometer of the nation’s feelings about the economic situation and about where the government is headed.

Improving Employee Satisfaction

The Bellingham Herald recently published an article called “Q: How Do I Improve Employee Satisfaction in Bad Economy? A: Lighten Up.”

Writer Bob Dahms presents the question: “My business seems a little dark lately. The crummy economy and lack of growth have us all in the dumps. What can I do to get our mojo back?

The answer given is complex. It acknowledges the problem as a common one- “workplace malaise is widespread.”

First, the article suggests making the workplace less grim and more enjoyable. Employees who are happy and motivated are more committed and productive. The impact spreads beyond just the office, as well. Consumers and clients will be able to sense if there is something amiss.

“Businesses with high employee satisfaction enjoy higher productivity, less absenteeism and better customer retention,” the article explains. “They are also more creative- an important ability in the competitive business world.”

An example of a business that has managed to achieve this attitude is Southwest Airlines. They put enormous amounts of effort into corporate culture, encouraging their employees to think outside the box. They hire people based on their personalities and ability to remain comfortable and think on their feet in any situation.

Their job interviews include questions like “One time my sense of humor helped me out was…”, “My personal motto is…” and “An example of my top performance is…”

They focus less on experience and job skills, because they know they can teach the right person anything they need to know for their new job.

The article adds: “It’s appropriate for small businesses to draw some lessons from Southwest. Even though they’re huge now, they think of themselves as a ‘big, small business’.”

 

U.S. Expects Slow Economic Growth in 2013

According to a recent survey, the United States’ economy will continue to grow, but at a slow pace. This is due to low consumer spending and minimal business investment in the region.

Gross domestic product is expected to grow at an annual rate of 2.1% in 2013, according to a forecast from the National Association for Business Economics. Last year, it predicted a 2.2% growth rate.

Nayantara Hensel, spokesperson of the NABE Outlook Survey, said:

“The panelists forecast little improvement in consumption growth, significantly reduced growth in investments in nonresidential structures, equipment and software, and reduced growth in corporate profits and industrial production.”

Still, the labor market has revealed definite improvement; non-farm payrolls are averaging at 165.000 jobs per month next year. So far, 2012 has seen an average of 151,000 new jobs per month.

The U.S. housing market will also continue to grow next year, especially in residential construction and home prices.

American Economy Sees Only Modest Growth

The U.S. economy has seen modest but consistent growth over the last quarter, up to a 2% annual rate from a 1.3% rate in April-June. The climb is a result of increased spending by both consumers and the federal government. Still, job creation remains low.

The upcoming elections have much to do with the future of America’s economy; Republican nominee Mitt Romney is known for his attacks on President Obama’s approach to the economic crisis. Growth has indeed slowed from last year, but Obama insists that it is growing steadily.

Meanwhile, analysts have yet to express optimistic outlooks.

Paul Ashworth of Capital Economics said: “We suspect that growth will slow a little in the fourth quarter, and expect it to remain close to 2 percent next year.”

Jamestownsun.com explains:

“The economy grew faster last quarter in part because consumer spending rose at a 2 percent annual rate, up from a 1.5 percent rate in the second quarter. Spending on home building and renovations increased at an annual rate of more than 14 percent.”

It adds that “federal spending surged, mainly because of the sharpest increase in defense spending in more than three years.”