SAN DIEGO -- The University of San Diego's Index of Leading Economic Indicators rose for the fourth consecutive month in August, it was announced Thursday.

The index, which is used to gauge the health of San Diego's economy, edged up .6 percent last month, according to Alan Gin, who compiles the index for USD's Burnham-Moores Center for Real Estate.

Contributing to the increase was a sharp gain in local consumer confidence, according to Gin. Also advancing solidly were local stock prices and the outlook for the national economy.

However, there was a drop in the number of building permits and help- wanted advertising and a rise in the number of initial claims for unemployment insurance.

According to Gin, last month's gain was the largest since March 2004.

"It reinforces the view projected since the index first turned positive that the local economy is approaching a bottom. The breadth of the advance remains mixed, with the number of rising components matched by the number of decliners."

According to Gin, the bottom of the economic slump will likely come in the first half of 2010, rather than in the latter part of this year.