California Economy Continues Moderate Recovery.SAN FRANCISCO--(BUSINESS WIRE)--July 7, 1995--California's economy is continuing a moderate recovery according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a new Wells Fargo Wells Fargo armored carriers of bullion. [Am. Hist.: Brewer Dictionary, 1147] See : Protectiveness Wells Fargo company that handled express service to western states; often robbed. [Am. Hist. report issued by the bank's Economics Division. "California businesses are starting to show faint signs of accelerated growth, which indicates that its economy is beginning to pick up speed," said Gary Schlossberg, senior economist for the bank. "This week's Federal Reserve Board action of lowering the Federal Funds rate Federal Funds Rate The interest rate at which a depository institution lends immediately available funds (balances at the Federal Reserve) to another depository institution overnight. by one-quarter of 1 percent should further stimulate both the state and national economy." According to the report, signs of economic recovery in the state include new home construction and increased sales of existing homes as a result of the recent sharp drop in mortgage rates, active lending by banks, the improved value of California real estate, and job gains, which if they continue to grow at the present rate of 2 percent a year would mean an additional 250,000 new jobs in 1995. One important area in which growth has been disappointing is consumer spending Consumer demand or consumption is also known as personal consumption expenditure. It is the largest part of aggregate demand or effective demand at the macroeconomic level. , the report states. In April, retail sales fell by 0.4 percent from March and so far this year were only 3 percent above 1994. The report notes that this is surprising given that some 65,000 new jobs were created during the first four months of the year and incomes rose appreciably. One explanation, according to the report, is that consumer confidence is still gloomy and households remain cautious. The report notes that the state continues to grapple with to enter into contest with, resolutely and courageously. See also: Grapple defense cuts and other deep-seated economic problems as it slowly emerges from the worst recession since the 1930s. It specifically found that: manufacturing in Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, had been more volatile than in other parts of the state mainly due to the shrinking aerospace industry located there; a less volatile manufacturing sector in the Bay Area had insulated in·su·late tr.v. in·su·lat·ed, in·su·lat·ing, in·su·lates 1. To cause to be in a detached or isolated position. See Synonyms at isolate. 2. it somewhat from changes outside the state; the Central Valley had been even more insulated from swings in the U.S. economy for several reasons including its relatively stable government employment; and the economic situation in San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. was mixed with an expected modest overall recovery in 1996. The report concludes that an improvement in consumer confidence and lower interest rates accompanied by better growth in the rest of the country would result in a stronger California. CONTACT: Wells Fargo Bank Daphne Larkin, 415/396-3606 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion