The state of the U.S. economy was a source of anxiety for many in 2018. From the rollercoaster ride that was the stock market to concerns over a possible trade war with China and a federal government shutdown that has extended into 2019, it’s understandable that many had a dim view of the past year’s economy as they rang in the new year.
But that doesn’t tell the whole story for our region where various industries saw record-breaking growth and business owners have a continued sense of optimism.
In California, the unemployment rate hit 4.1 percent for November − the state’s lowest level in more than 40 years.
While L.A. County’s jobless rate was slightly higher (4.7 percent in November), the county’s civilian workforce expanded by 10,000 to 5,169,000, according to the state’s Employment Development Department.
Despite the threat of new tariffs (or perhaps because of them), activity at both the ports of Los Angeles and Long Beach steamed ahead.
In October, the Port of Los Angeles handled 952,554 Twenty-Foot Equivalent Units, the most cargo processed at the port in a month in its 111-year history.
In December, officials at the port − which processed 9,343,192 TEUs in 2017, breaking its annual cargo-moving record − said it was on track to again surpass 9 million TEUs in 2018.
The story was much the same in Long Beach, where officials said the port was likely to surpass the record-breaking 7,544,507 TEUs handled there in 2017.
When it comes to consumer spending, many in the retail sector had a jolly holiday. Despite a drop in consumer confidence in December (the Conference Board Consumer Confidence Index fell to 128.1 from 136.4 in November), shoppers were still willing to open their wallets during the holiday season.
MasterCard SpendingPulse, which tracks retail sales, found that between Nov. 1 and Dec. 24, holiday sales increased nationwide by 5.1 percent to $850 billion. This was the strongest growth in holiday spending in six years, according to the company, which also found online sales increased by 19.1 percent during the same time period.
2018 was also a blockbuster year for Hollywood at the box office.
As of Dec. 24, ComScore Inc. was predicting 2018’s box office earnings in the United States and Canada would reach $11.9 billion − a 7 percent increase over 2017. Box office receipts in 2018 have already blown past 2016’s record of $11.4 billion.
Burbank-based Walt Disney Co.’s “Black Panther,” “Avengers: Infinity War” and “Incredibles 2” were the three top earners domestically.
As the new year begins, it’s worthwhile to reflect on the milestones L.A’s business community hit in 2018 as well as prepare for 2019’s challenges and opportunities.
