Economic Forecast Says Calif. Growth Will Slow, But No Recession
A major California economic forecaster is downgrading its national growth projections for this year. But Los Angeles-based Beacon Economics says that despite slower than expected growth, the Golden State is not headed for a double dip recession. Beacon founding partner Christopher Thornberg says California’s pace of recovery is faster than in the United States overall. "Professional services are doing great," said Thornberg, "and tourism really bounced back nicely in the state. And of course last but not least, I cannot forget to mention technology. Technology, which is so important to the Bay Area, obviously the technology sector is on fire right now." The forecast points to continued risks posed by the growing financial crisis in Europe, which in turn hurt the growth of U.S. exports. On the plus side, median home prices are edging upwards. And consumer spending and taxable sales are also up.