The Commerce Department sharply reduced its estimate of fourth-quarter growth to a moderate 2.4% annual rate. Friday’s revision downsized big gains in consumer spending and exports from its initial estimate of 3.2% in January.
Unusually cold weather in January chilled factories’ output and froze up some mining operations but boosted utility consumption as Americans huddled for warmth. Total industrial production fell a seasonally adjusted 0.3% in January, the Federal Reserve said Friday. It was the first decline for the reading since July.
In January, as businesses struggled through a weak post-holiday period in a month that already tends to be slow, industry sales slid by their largest margin in 18 months.
An economic recovery that looked poised to lift off is reverting to its characteristic sluggishness as gauges of shopping activity, job creation, wage growth and factory output flash yellow.
The second reason why the Index is troubling is because our prosperity is not widely shared. It is a story the Index has been telling for many years, but in this 2014 installment the gaps and disparities are more pronounced than ever. These are the hard facts: our income gains are limited to those with ultra high-end skills. Median wages for low- and middle-skilled workers are relatively stagnant and the share of households with mid-level incomes has fallen in Silicon Valley more than in the state and nation. Disparities by race are more persistent than ever. We also saw a sharp increase in homelessness.
Overall, in another sign that California’s economy is shaking off the recession, state tax officials reported Tuesday that the statewide median income – for 2012 – was $70,938, up 4.1 percent over the previous year. That’s for those filing joint tax returns. For individual returns, the 2012 median income was $35,910, an increase of 3.5 percent, according to the state Franchise Tax Board.
Energy experts predict a 50-cent rise in prices over the next few weeks as supplies tighten — an annual event as refineries scale back production for maintenance, California converts to the more expensive summer blend of gasoline, more drivers hit the road and oil-exporting countries boost crude prices to around $100 a barrel.
California entered the new calendar year with generally good financial news. Total revenues topped estimates for January even though projections were recently revised upward as part of the Governor’s 2014-15 Budget submitted early this year. Overall spending was less than expected.
. . . San Francisco and Houston are North America’s “emerging” global cities. They are also rival representative champions and exemplars of two models of civic development. San Francisco is the world’s technology capital; focused on the highest levels of the economic food chain; paragon of the new, intangible economy; and promoter environmental values and compact development. Houston is the closest thing to American laissez-faire; unabashed embracer of the old economy of tangible stuff, including unfashionable, but highly profitable, industries like oil, chemicals, and shipping.
The National Federation of Independent Business’ monthly index of small business indicators gained 1.4 points in December to hit 93.9. That’s back to where it was this summer, but 6 points below the pre-recession average, according to NFIB.
January 8, 2014 marks the 50th anniversary of President Lyndon B. Johnson’s declaration of an unconditional War on Poverty, made during his 1964 State of the Union address. Although poverty remains a reality for millions of Californians, the last half-century has shown the key role that public policies can play in reducing poverty and fostering economic security. With state policymakers set to begin crafting a new state budget, this Budget Brief looks at poverty in the Golden State and discusses some ways that policymakers can help reduce economic hardship and expand pathways to opportunity and advancement.
Allied Van Lines moved 37 percent more families out countywide than in last year, down from 43 percent net emigration in 2012. U-Haul officials, who observed 5.9 percent net immigration to the city of San Diego in 2012, said this reversed last year to 1.6 percent more customers moving out in 2013.
California ended the 2013 calendar year with a burst of tax receipts as the economic recovery continued to boost jobs, incomes, profits, and spending. Revenues flowing into the State’s General Fund coffers totaled $10.6 billion, beating estimates contained in the 2013-14 Budget Act by a hefty $2.3 billion, or 27.7%.
Private-sector payrolls increased by 238,000 positions in December, according to the national employment report compiled by payroll processor Automatic Data Processing Inc. and forecasting firm Moody’s Analytics. The gain is the highest ADP estimate since November 2012.
Preliminary data from the Franchise Tax Board (FTB) indicate that December 2013 personal income tax (PIT) and corporation tax (CT) revenue collections were a combined $1.6 billion (20 percent) above monthly projections included in the state’s 2013-14 budget plan.