The Index has tracked economic activity in the county since 1996, and is celebrating its 30th anniversary this fall.
The Index measures activity across six sectors and combines data into a single number, known as the Composite Index. The Index uses 100 as its baseline, based on economic activity in January 1994. This month, the Composite Index was 96.5, unchanged from the previous month and down 1.1% from the same time last year.
Gas Prices Rise, but Eureka Sees Smaller Increase
Californians are feeling the pressure at the pump as gas prices rose sharply in August. But the increase was more modest in Eureka, according to Index Director Erick Eschker, a Cal Poly Humboldt economics professor.
Eureka’s average gas price rose 13 cents to a new price of $5.99. Northern California saw a 59-cent increase in average gas prices and now stands at $5.82, while the state average increased 48 cents to a price of $5.70.
“Over August, average gas prices increased locally far less than in the state and nation,” he says.
Price increases are linked to escalating tensions between the U.S.and Iran, which has resulted in higher crude oil prices.
Home Sales Rise, but Home Prices Fall
The Humboldt County Home Sales Index increased 3% from the previous month, but remained more than 8% lower than it was last August. The median home price also dropped $15,000 from $440,000 to $425,000.
Median home prices were also $24,775 lower than this time last year, when values stood at $449,775, according to the Index, which uses data from the Humboldt Association of Realtors. All data is seasonally adjusted to account for normal seasonal fluxations.
Employment and Other Economic Indicators
The Index’s three leading indicators are unemployment claims, building permits, and help-wanted advertisements.
Overall, these indicators were mixed in August. The number of claims for unemployment insurance increased by 2.6% from the previous month, while help-wanted advertising rose 0.7%. Building permits, however, fell 25.6%.
The report notes that increases in unemployment claims and declines in building permits can signal a slower economy. But the slight increase in help-wanted advertising provides a more positive signal.
“Overall, the local economy is experiencing both challenges and opportunities. The important takeaway is that, despite some of those challenges, we’re seeing stability across the local economy. There are also areas showing improvement, which gives us reason to be optimistic about the months ahead.”