Business group’s economic indicators edge lower
Nonprofit business research organization the Conference Board said on Friday that its leading economic index dipped in May by 0.1% due to ongoing consumer pessimism, weakness in the manufacturing sector, a rise in jobless claims and a decline in permits to build homes.
This was despite stock prices recovering last month after a significant drop in April, the group’s Justyna Zabinska-La Monica said in a statement.
Going forward, the Conference Board expects the economy to grow 1.6% this year, as measured by gross domestic product, and tariffs could lead to a further economic slowdown next year.
“The Conference Board does not anticipate recession, but we do expect a significant slowdown in economic growth in 2025 compared to 2024,” according to the statement.
The index had fallen 1.4% in April and has dropped 2.7% over the past six months, compared to 1.4% during the previous six-month period, the group said.
California’s jobless rate flat at 5.3%, though jobs ticked up slightly
The unemployment rate in California, which has the most workers of any state, stayed the same in May as the previous month at 5.3%, the state’s employment development agency said Friday. The rate was slightly lower, 5.2%, one year ago.
The jobless rate in California in April was the third highest in the country, according to the U.S. Labor Department. That doesn’t include the District of Columbia, which had a higher rate than any state at 5.8%. California has more than 18 million workers, the department said, with Texas second at 14 million.
California added 17,700 jobs in May, according to the state agency. That was about 13% of the overall gain across the U.S. of 139,000 jobs. Many of the new positions in the Golden State were in healthcare and social assistance, which the agency attributed in part to the state’s aging population.
