Welcome to a new quarterly report tracking trends in our California economy –
the largest in the nation and the ninth largest in the world. Currently, most
information on the health of California's economy comes from the payroll
employment survey, statistics on the housing and construction markets, and
consumer spending on taxable goods. Unfortunately, this leaves us with an
incomplete picture of the real growth in economic output and the status of the
labor force overall.
To provide a better understanding of our economy, Beacon Economics – with the
support of City National Bank – developed models to draw a more timely and
complete picture. The findings will be highlighted each quarter in The City
National Economy & Jobs Report, featuring estimates of state economic
output growth and a broader view of the state of the California workforce.
|OUR TOP FINDINGS
|Manufacturing has been one of the strongest contributors to
California's recovery. This is due in large part to productivity
gains by investments in IT.
||The California economy is estimated to have expanded at a
3.9% rate in 2013 and has outpaced the nation in terms of
economic growth for the second year running.
||California is not in another housing bubble. The
appreciation in home prices is due to fewer distressed
properties dragging on growth and a lack of supply of homes for
City National will post the next edition in June.
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.