After declining for 4 straight quarters from early 08 to early 09, economists estimate OC’s economy has been growing since Q2-09.  After 2 years of negative expectations, OC executives are definitely optimistic in their outlook for Q2-10.  A quarterly index of business expectations is at 65.2 for Q2, the 5th straight gain since the low in early 09.  The index, based on a survey of executives, professionals, managers and business owners is designed to be a leading indicator of quarterly economic activity.  An index reading of 50 or more signals a positive outlook for the quarter.  The Q2 65.2 reading is up from 53.3 for Q1.

More specifically, let’s look at housing…

OC Housing:  Although still 45% below their Feb, 2005 peak, OC housing prices have increased 5 to 7% since January 2010. There are 2 primary OC housing markets—those for below $1M (hot) & those above $1M (cold).  At the current pace, it would take buyers 2.5 months to absorb current inventory of below $1M homes.  Above $1M home inventory would take 9.4 months to absorb.

And lastly…

OC’s annual gross metropolitan product—a measure of economic output similar to the nation’s annual gross domestic product—is $165.5 billion.  That is down from a high of $172.6 billion at the start of 2007.

All of these stats are good news for advertising companies in Orange County as well as marketing firms in Southern California. What about small businesses in Orange County? Does this increase your sense of hopefulness for the future? We’d love to hear from you!