Econowatch's signals still mixed: inflation flat, foreclosures zoom.

Econowatch's signals still mixed: inflation flat, foreclosures zoom

Econowatch again presented a mixed bag of figures on the Southland economy, reflective of a business climate that remains difficult, if on the slow mend.

In good news-bad news, there was no inflation in the month of June in Los Angeles, according to the federal Bureau of Labor Statistics. The June index number, 140.8, was unchanged from May but up 4.3 percent from June a year ago.

The good news is that inflation is low; but it is bad news if low inflation reflects price softness caused by a sagging economy.

And some parts of the local economy are definitely sagging: Construction lending in particular in Los Angeles County remains very soft, with just $137 million in new building loans extended in June, off from $168 million in May and off 65.8 percent from a year ago.

Lending for property purchases also remained weak, although nowhere near as weak as construction. About $2.24 billion for property purchases was lent in Los Angeles County in June, off 12.6 pecent from 12 months earlier.

In better news, home sales in the county rose to 6,239 in June, up 1.5 percent from May and up 11 percent from a year earlier. Home prices remain soft, virtually unchanged from a year ago -- hardly the "California house price collapse" scenario so brashly predicted by national financial weekly Barron's.

Condo sales are up smartly in June from a year ago, by 20.2 percent, although prices are virtually unchanged in the 12-month period.

In chilling news for banks, thrifts, insurers and the real estate industry, foreclosures increased in Los Angeles County in June, rising 36.8 percent in total dollar volume from May and 225.8 percent from June a year ago, according to statistics provided by TRW Marketing Services.

As importantly, the number of foreclosures rose to 509 in June, an all-time record. By comparison, there were 477 foreclosures in May and 169 in June a year ago.

In somewhat better news, exports through the Los Angeles Customs District reached 3.37 billion in May, up 4.5 percent from a year earlier, while imports sagged to $4.89 billion, off 3.6 percent from the same period a year ago.

Econowatch, a compilation of Southland economic and business statistics, is published weekly by the Business Journal to keep tabs on local economic trends.