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City National Economy & Jobs Report

Second Quarter 2014

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California’s economic growth may have slowed somewhat in the first quarter of 2014, but this comes as no surprise given the economic headwinds faced by the rest of the nation. Newly revised numbers from the Bureau of Labor Statistics show that the U.S. economy contracted at a 1% annualized pace in the first quarter of 2014, a disappointing result after a solid ending to 2013. But the reasons for this slowdown – a slow pace of inventory accumulation and fewer exports – can be traced directly to winter weather issues. Although California didn’t feel the cold, the overall slower growth did impact the state. While growth was still positive, by our estimates it was at a slower pace than in the fourth quarter of 2013. The good news is that these issues are transitory and we expect significantly stronger results in the current quarter both nationally and locally.

OUR TOP FINDINGS    
Manufacturing Leader: California is home to roughly one-quarter of the nation’s production of computer and electronic products. Over half (56%) of that production is located in Silicon Valley and close to one-quarter (21%) is in the Los Angeles metropolitan area. Majority of New Jobs Not Low Wage: Over the last year 56% of new jobs created in California were in industries with average annual wages above $50,000. Central Valley Overlooked...and Growing: Far from being a stagnant region, the Central Valley posted 1.7% more employment growth in the first quarter of 2014 than it did in 2013.

City National Economy & Jobs Report

This report is for general information and education only and was compiled from data and sources believed to be reliable. City National Bank does not warrant that it is accurate or complete. Opinions expressed and estimates or projections given are those of the authors as of the date of the report with no obligation to update or notify of inaccuracy or change. This report is not a recommendation or an offer or solicitation to buy or sell any financial instrument discussed. It is not specific investment advice. Financial instruments discussed may not be suitable for the reader. Readers must make an independent investment decisions based on their own investment objectives and financial situations. Prices and financial instruments discussed are subject to change without notice. Instruments denominated in a foreign currency are subject to exchange rate and other risks. The Bank (and its clients or associated persons) may engage in transactions inconsistent with this report and may buy from or sell to clients or others the financial instruments discussed on a principal basis. Past performance is not an indication of future results. This report may not be reproduced, distributed or further published by any person without the written consent of City National Bank. Please cite source when quoting.

 

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The City National Economy and Jobs report is a quarterly look at real economic output in the State of California across key industries with data provided by Beacon Economics. Fill out the form below to subscribe.