SAN DIEGO -- The slump in San Diego County's economy is likely to extend through the first half of 2009, a University of San Diego economist reported Thursday.

The Index of Leading Economic Indicators for San Diego County fell 1.1 percent in May, the eighth straight significant monthly decline, according to Alan Gin, who compiles the index for the University of San Diego's Burnham-Moores Center for Real Estate.

The decline was led by a sharp drop in consumer confidence, fewer help-wanted advertisements and a rise in the number of people applying for unemployment insurance, reported Gin.

The index showed slight gains in local stock prices, building permits and the outlook for the national economy.

"There is no sign of any change in the negative outlook for the local economy for the near future, with the slump now likely to extend through the first half of 2009," the index states.

According to Gin, San Diego's labor market is particularly weak, with job growth in May down on a year-over-year basis.