(May 18, 2004) Anecdotal evidence shows a California recovery stirring, the California Chamber of Commerce Economic Advisory Council stated in a report earlier this month.

Read the full report.

'With California's economy starting on the road to recovery, we must now focus on those policies which continue to hamper job growth and economic expansion in our state,' said Chamber senior vice president Jeanne Cain. 'We encourage the legislature to look at several 'job killer' laws currently in effect, such as California's unique 'sue your boss' law, and repeal them.  Governor Schwarzenegger has clearly sent the message that jobs and employers are wanted in our state, which has helped our economy get back on track, but now the legislature must do the same.'

Although California jobs did not grow much in March as compared to the nation, the council was optimistic that positive business indicators would soon show up in official job statistics.

Some positives in the California economy include rising high tech exports, improved tourism business, more Department of Defense spending, a pick-up in entertainment production and successes in retaining business in the state, according to the council.

One sign of a stirring business recovery in California is the Department of Finance report of showing increases in year-over-year tax withholding, increases in sales tax revenue and satisfactory income growth.

Industry highlights:

• Agricultural yields are better than average this year. Favorable weather is good news for some crops, which are benefiting from strong prices and/or already established contracts.
• Commercial industrial loans rose 2.3 percent during the first quarter as loan standards eased. Commercial real estate loans eased experienced a small increase and credit quality indicators have strengthened.
• Retail real estate continued to be strong followed by industrial real estate. Residential real estate in the Bay Area also had a full recovery.
• Imports from China were up this quarter, which directly affected the strengthening of the Southern California warehousing demand.

The Chamber council also warned of the still unknown risks associated with the current inflation and interest rate picture. Rising interest rates would slow residential real estate activity across the state.

The report predicts that 2004 is likely to be a good year. The council is more concerned about next year as inflation concerns re-emerge.

Read the full report.

Staff Contact: Jeanne Cain