Business activity in the Inland Empire has been on the rise recently, standing in contrast to the decline in gross domestic product at the national level, according to the new Inland Empire Business Activity Index released today by the UCR Business Center for Economic Forecasting and Development. In the second quarter of 2022 (latest data), the region’s trade growth will show a sharp increase from recent quarters.
Business activity in the domestic empire grew by 1.6 percent compared to 4.7 percent in the first quarter of 2022 and 6.4 percent in the fourth quarter of 2021. . Additionally, the short-term outlook for the domestic empire remains positive, with local business activity forecast to increase between 2% and 3% over the next 12 months.
According to the analysis, a long-term decline in the growth rate of IE is expected as the region’s economy returns firmly to pre-pandemic conditions.
“The Inland Empire’s overall economic recovery and prospects for continued growth are driven in part by its large industrial, transportation and storage strengths, which were at the height of the pandemic but are now declining,” Tanner said. Osman, research manager at the Center for Economic Forecasting and one of the index authors. The slowdown that we are experiencing has led to a sharp decline in the domestic real estate market and overall weakening of economic and business activity due to rising interest rates.
According to the report, even after accounting for local inflation, the real cost of home ownership in the Inland Empire increased 24.5% earlier this year. at the same time,
On average, inflation-adjusted hourly earnings for private sector workers in the region fell 6.1 percent.
The impact is clear: Sales of existing single-family homes, which comprise the lion’s share of the Inland Empire’s housing market, fell 9.3 percent in the first half of this year. Despite the reduction in sales, prices increased by 17.9% in the same period. “These numbers are indicative of the severe housing shortage in Southern California and the clear need for housing in the state as a whole,” Usman said.
Check out the new Inland Empire Business Activity Index.