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Industrial output is a leading indicator in overall GDP growth

  • ​An established trend across many markets is that the industrial sector tracks general growth in gross domestic product; this trend proves true for Orange County.
  • As may be seen, real industrial GDP growth in OC has been relatively stable, varying from overall OC real GDP growth by less than 1 percentage point for 10 years; its greatest difference reached only 5.5 percentage points.
  • As a comparison, Professional, technical and scientific services experienced a less than 1 percentage point difference only once during the period in question and reached a difference of 12.7 percentage points in 2008.
  • For the most part, this trend is expected to remain true, especially in OC as industrial accounts for over 20 percent of total output, with potential for only positive change if the sector continues to grow at the rapid pace expected.
  • Demand from e-commerce, 3PL and retail companies is bolstering growth in the industry across all of Southern California and as a massive consumer of goods and a distribution hub for the rest of the country, this growth is expected to remain strong.​

Source: JLL Research, Moody's Analytics​

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