News & Information

Review finds local economy gradually recovering

07-16-2010


The Sacramento Business Review provides a comprehensive analysis of the Sacramento economy
The economic forecast for the Sacramento region suggests the worst is over, but recovery will be slow due to a variety of issues including a double-digit unemployment rate and a state budget that will likely include cuts to payroll and programs, according to the July 2010 Sacramento Business Review.

The bi-annual Sacramento Business Review is published by Sacramento State's College of Business Administration and the CFA Society of Sacramento. It is an independent review and forecast that focuses specifically on the economy of Sacramento.

"Despite the national economy rebounding, Sacramento unfortunately remains pressured with continued job losses, albeit at a slower rate, and heightened uncertainty due to a growing state deficit," says Sanjay Varshney, dean of the College of Business Administration at Sacramento State.

The report addresses the housing and real estate market's continual drift in search of a bottom as well as a struggling bank industry and non-performing loans continuing to pose challenges. Those factors, as well as the state deficit, compound to slow down economic progress, says Varshney.

But in spite of unemployment holding at current high percentages, Varshney says the levels will slowly improve, with an expectation that the positive momentum of the current business cycle will gradually lead the local economy back to health.

"On the bright side, our recession in Sacramento may end as early as the third quarter of 2010 with economic growth, despite weak employment outlook," says Varshney. "Capital markets provide hope with stable local corporations and the SBR Index performing in line."

For more information, visit www.cba.csus.edu/sacbusinessreview/Sacramento_Business_Review/Home.html. For media assistance, call Sacramento State's Public Affairs Office at (916) 278-6156.