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National economy shrinks in fourth quarter

Defense spending plunges, but may not be bad portent for San Diego

The U.S. economy declined in the fourth quarter for the first time since the Great Recession, as growth inched down at a 0.1% annual rate. For the full 2012, the economy grew 2.2% versus 1.8% in 2011 and 2.4% in 2010 -- too tepid to stimulate employment significantly, but perfect for Wall Street, because the Federal Reserve has an excuse to keep pushing interest rates down, despite their extremely low levels.

In the fourth quarter, military spending plummeted 22.2%, although it had zoomed 12.9% in the third quarter. Some local economists believe cuts in defense spending will hurt San Diego this year. Home building was up in the fourth quarter. Military and housing constitute a large percentage of the San Diego economy. Yesterday (Jan. 29), the Standard & Poor's/Case-Shiller home price index showed San Diego County values rising 0.9% in November from October, sharply higher than most of the largest 20 metro areas. Year-over-year, the local increase was 8%, topping gains in most other cities. Many economists expect a big housing rebound sparked by the low interest rates, but Yale's Robert J. Shiller, one of the designers of the index, isn't counting on a boom.

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The U.S. economy declined in the fourth quarter for the first time since the Great Recession, as growth inched down at a 0.1% annual rate. For the full 2012, the economy grew 2.2% versus 1.8% in 2011 and 2.4% in 2010 -- too tepid to stimulate employment significantly, but perfect for Wall Street, because the Federal Reserve has an excuse to keep pushing interest rates down, despite their extremely low levels.

In the fourth quarter, military spending plummeted 22.2%, although it had zoomed 12.9% in the third quarter. Some local economists believe cuts in defense spending will hurt San Diego this year. Home building was up in the fourth quarter. Military and housing constitute a large percentage of the San Diego economy. Yesterday (Jan. 29), the Standard & Poor's/Case-Shiller home price index showed San Diego County values rising 0.9% in November from October, sharply higher than most of the largest 20 metro areas. Year-over-year, the local increase was 8%, topping gains in most other cities. Many economists expect a big housing rebound sparked by the low interest rates, but Yale's Robert J. Shiller, one of the designers of the index, isn't counting on a boom.

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4S Ranch Allied Gardens Alpine Baja Balboa Park Bankers Hill Barrio Logan Bay Ho Bay Park Black Mountain Ranch Blossom Valley Bonita Bonsall Borrego Springs Boulevard Campo Cardiff-by-the-Sea Carlsbad Carmel Mountain Carmel Valley Chollas View Chula Vista City College City Heights Clairemont College Area Coronado CSU San Marcos Cuyamaca College Del Cerro Del Mar Descanso Downtown San Diego Eastlake East Village El Cajon Emerald Hills Encanto Encinitas Escondido Fallbrook Fletcher Hills Golden Hill Grant Hill Grantville Grossmont College Guatay Harbor Island Hillcrest Imperial Beach Imperial Valley Jacumba Jamacha-Lomita Jamul Julian Kearny Mesa Kensington La Jolla Lakeside La Mesa Lemon Grove Leucadia Liberty Station Lincoln Acres Lincoln Park Linda Vista Little Italy Logan Heights Mesa College Midway District MiraCosta College Miramar Miramar College Mira Mesa Mission Beach Mission Hills Mission Valley Mountain View Mount Hope Mount Laguna National City Nestor Normal Heights North Park Oak Park Ocean Beach Oceanside Old Town Otay Mesa Pacific Beach Pala Palomar College Palomar Mountain Paradise Hills Pauma Valley Pine Valley Point Loma Point Loma Nazarene Potrero Poway Rainbow Ramona Rancho Bernardo Rancho Penasquitos Rancho San Diego Rancho Santa Fe Rolando San Carlos San Marcos San Onofre Santa Ysabel Santee San Ysidro Scripps Ranch SDSU Serra Mesa Shelltown Shelter Island Sherman Heights Skyline Solana Beach Sorrento Valley Southcrest South Park Southwestern College Spring Valley Stockton Talmadge Temecula Tierrasanta Tijuana UCSD University City University Heights USD Valencia Park Valley Center Vista Warner Springs
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