Public, Logistics Sectors Boost Economic Gains Near Banning, IE: Report

RIVERSIDE COUNTY, CA - The Inland Empire economy expanded 2.2 percent in the most recent quarter, powered by productivity gains in logistics and public sector hiring, the UC Riverside Center for Economic Forecasting & Development reported Wednesday.

The center's executive director, Robert Kleinhenz, said third-quarter growth, as measured by the gross metropolitan product index, was more than double the second quarter rate.

Government sector activity, combined with logistics, added the most to GMP. However, the trade, transportation and utilities sector was another key driver.

According to Kleinhenz, the two sectors that foundered between July 1 and Sept. 30 were construction and professional business services.

"Losses in these industries may be related as commercial building activity has slowed," he said. "Year-to-date, permits for commercial building have fallen 4.4 percent."

The UCR economist said the region's growth potential going forward was laden with uncertainty due to the prospect of waning international trade under President-elect Donald Trump.

"Large tariffs on imports, as the president-elect has proposed, may indefinitely depress the appetite for imports on the part of American consumers and businesses," Kleinhenz said. "On the other hand, trucking companies hope to benefit from increased spending on roads infrastructure and the possibility that when (he takes office), Trump will reverse costly safety regulations that are scheduled to go into effect next year."

The full report is available here: http://soba.ucr.edu/centers/carousel/GMP_3_November_2016.pdf .

– By City News Service / Image via Shutterstock