- Cal State University Fullerton’s
Business Expectation Indicator (OCBX) made
large gains in the second quarter of 2012
before falling to more conservative levels
for the second half of 2012. The index currently
sits at 92.4 in Q2 2017 – a slight 5.5 index
point decrease since the previous quarter
and 7.1 points above the Q2 2016 reading of
85.3. While below recent peaks, this represents
42.4 points above the 50-point indicator of
expansion, signifying that Orange County businesses
executives are moving through 2017 on a positive
note.
- California’s Consumer Sentiment
Composite Index registered a large jump recently,
reversing previous downward trends. The Q1
2017 index indicating consumer confidence
in the state economy is 111.4, a massive increase
compared to a year ago, and an increase of
5.9 points compared to the previous quarter’s
revised reading of 105.5. Despite a dip in
2016, the consumer sentiment reading has recovered
dramatically with the past three readings
registering scores consistently above 100,
indicating a continued sense of optimism for
Orange County businesses. Optimism on current
conditions registered another massive jump
during Q1 2016, increasing from a revised
reading of 112.3 in Q4 2016 to its current
reading of 124.4. Consumer sentiment on future
conditions, meanwhile, registered a smaller
increase compared to the previous quarter,
growing from its revised reading of 96.4 in
Q4 2016 to its current reading of 101.8.
- The total number of passengers
going through John Wayne Airport decreased
by 4,856 compared to March 2017 and decreased
by 38,554 compared to April 2016, reaching
851,169 total passengers in April 2017. Total
air cargo tons shipped increased by 353 tons
compared to March 2017 reaching 1,664 tons
in April 2017 and total airplane operations
(take-offs and landings) decreased by 844
compared to March 2017 reaching 24,754 in
April 2017 representing an increase of 535
operations compared to the year before.
- Orange County car and truck
sales decreased in April 2017 with registrations
totaling 7,671 cars and 6,975 trucks – a month-over-month
decrease of 862 cars and 1,144 trucks since
March 2017.
- In April 2017, the Port of
Los Angeles recorded a total 714,755 containers
– a decrease of 73,769 containers compared
to March 2017 yet an increase of 58,578 containers
compared to the April 2016. The Port of Long
Beach estimated 558,014 containers used in
April 2017, an increase of 52,632 compared
to March 2017’s activity levels and an increase
of 79,172 compared to April 2016.
- The vitality of Orange County’s
manufacturing industry is monitored by Chapman
University’s manufacturing composite index,
measuring growth in the industry sector by
monitoring changes in employment, production,
commodity prices, and new orders. Orange County’s
composite index shrunk somewhat going into
Q2 2017 falling to 61.7 compared to 63.2 in
Q1 2017 and yet increased compared to the
index score of 58.8 in Q2 2016. The state-level
composite index experienced an increase in
Q2 2017, hitting 62.2 compared to 58.3 in
Q1 2017.
- Approximately 131 Orange County
businesses were sold in April 2017, 16 less
businesses than the previous month and 32
less compared to April 2016. Los Angeles saw
a total of 333 businesses sold in April 2017
compared to 403 businesses sold in March 2017,
a decrease of 70 businesses over the past
month yet an increase of 15 businesses when
compared to April 2016.
- April 2017 saw 480 bankruptcy
filings in Orange County, a total of 53 cases
less than the previous month yet 1 more than
in April 2016. While bankruptcy filings saw
a dramatic decrease since starting in mid-2012,
this rate of decrease seems to have stabilized
with the number of Orange County bankruptcies
averaging 543 per month since January 2014
and averaging 501 since January 2015.
- Orange County office vacancy
rates decreased during Q1 2017, falling from
a revised 11.2 percent in Q4 2016 to 11.1
percent in Q1 2017. At the same time, Orange
County's industrial vacancy rates experienced
a decrease to a Q1 2017 rate 2.00 percent
from a Q1 2016 rate of 2.80 percent. Net absorption
in office space for 2017 YTD was recorded
at 126,049 square feet compared to 238,658
for the same time period last year. Industrial
absorption registered -118,000 square feet
being absorbed for YTD Q1 2017 compared to
428,000 square feet being absorbed for YTD
Q1 2016.
- As the both the residential
and commercial real estate markets continue
to recover, Orange County continues to see
gradual increases in asking rental rates at
both office and industrial properties. Office
asking rents in Orange County have increased
by $.18 in Q1 2017 per square foot compared
to a year before when the lease rate was $2.16.
Industrial rent rates also increased slightly,
reaching $0.93 per square foot for Q1 2017,
representing a $0.12 increase over the same
time last year.
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