New CBA, CFA journal looks at impact of recession on Sacramento

A new independent business forecast that for the first time focuses specifically on the economy of the Sacramento region, has been launched by Sacramento State’s College of Business Administration and the CFA Institute.

The inaugural issue of Sacramento Business Review explores the impact of the national recession on Sacramento’s economy, focusing on sectors such as real estate, energy, capital markets, and the service industry. It’s available online at www.cba.csus.edu/ibrc/index.html. A printed version will be distributed Jan. 13, with copies available at the college. The Review will be published twice a year.

The public-private collaboration came about when Sanjay Varshney, dean of the College of Business Administration, and former CFA Society of Sacramento President Jason Bell discussed that Sacramento had no independent, dedicated study of its business climate, despite having an economy larger than half the states in the nation.

With the CFA charter recognized as the gold standard of education and ethics among global investment professionals, Varshney says, it seemed natural to team its seasoned practitioners with professors who have their doctorates in finance and economics.

Because this downturn covers nearly every sector of the economy, Review authors say it could be early 2010, or possibly longer, before a Sacramento recovery kicks in.

Leisure and hospitality services have been particularly hard hit, states the Review, with restaurants experiencing a “perfect storm” of high fuel and transportation prices, rising food costs and reduced consumer spending. Two areas that will most likely weather the downturn are healthcare and education services, where 3 percent growth is forecast.

Information on the CFA Institute, Charter or the CFA Society of Sacramento is available at www.cfainstitute.org/.