California Economy Flat in February

Comerica Bank’s California Economic Activity Index was flat for the seventh straight month in February, at a level of 99. February’s reading is 36 percent, or 26 points, above the index cyclical low of 73.  Year-to-date the index is even with the average for all of 2011.

“The economic recovery of California has stalled as shown by another flat month for our California Economic Activity Index. Silicon Valley remains vibrant in an otherwise lackluster state economy. However, the drag from a still-depressed housing sector is a dominant and smothering economic factor for much of the rest of the state,” said Robert Dye, Chief Economist at Comerica Bank. “State tax revenues are below forecasts and this is increasing stress on state finances. Expected cuts in federal defense spending will also weigh on the state on the years ahead. Slower growth in Asia is yet another risk factor that may weigh disproportionately heavy on the California economy.”

Share 'California Economy Flat in February' on Delicious Share 'California Economy Flat in February' on Digg Share 'California Economy Flat in February' on Facebook Share 'California Economy Flat in February' on Google+ Share 'California Economy Flat in February' on LinkedIn Share 'California Economy Flat in February' on Pinterest Share 'California Economy Flat in February' on reddit Share 'California Economy Flat in February' on StumbleUpon Share 'California Economy Flat in February' on Twitter Share 'California Economy Flat in February' on Add to Bookmarks Share 'California Economy Flat in February' on Email Share 'California Economy Flat in February' on Print Friendly
This entry was posted in California, Economic Activity, Indices. Bookmark the permalink.

Comments are closed.