Thread: California’s economy now 6th in world

California’s economy now 6th in world

June 14, 2016

California’s economy is now the sixth largest in the world, according to a new federal report.

The state’s economy, led by the finance and insurance industries, grew at the second fastest rate in the nation last year. Only Oregon’s economy grew faster.

The federal Bureau of Economic Analysis says California’s economy expanded by 5.7 percent in 2015 with an economic output of $2.46 trillion.

California’s economy is sixth in the world after the United States, China, Japan, Germany and the United Kingdom.

http://cvbj.biz/2016/06/14/californi...now-6th-world/

Eight State Economies
Shrank in 4th Quarter

More than half of states saw GDP growth decline at end of 2015

A helicopter lands near a test drilling site for the

BY: Ali Meyer
June 14, 2016 2:00 pm

Eight states had negative GDP growth in the fourth quarter of 2015, and Alaska had negative growth for two consecutive quarters putting it in a recession, according to data released Tuesday by the Bureau of Economic Analysis.

Real gross domestic product is the bureau’s most comprehensive measure of U.S. economic activity and is an inflation-adjusted measure of each state’s prices for the goods and services produced for all industries within that state.

There were only three states—including Alaska, North Dakota, and West Virginia—that had negative GDP growth in the third quarter of 2015, which includes data from July, August, and September.

By the fourth quarter of 2015, which includes data from October, November and December, that number grew to eight states: Alaska, Iowa, Kansas, Nebraska, New Mexico, Oklahoma, Montana, and Wyoming.

Four of these states, Alaska, Wyoming, Oklahoma, and New Mexico, had significant declines in their mining sector, which includes oil and gas production. The other four, Kansas, Iowa, Montana, and Nebraska, had significant declines in agricultural output.

“It looks like some of the negative Q4 growth can be explained by the relatively volatile energy and farm sectors,” explained Mark Perry, a scholar at the American Enterprise Institute. “The low prices for oil and natural gas last year could have impacted both energy production (which has been declining for oil) and the market price of the energy production as it is calculated for state GDP.”

“The farming sector is very cyclical and has been declining in states like Iowa,” he added. “In fact, farm income nationally is expected to fall. The USDA released a new forecast this week predicting that U.S. farm income will fall to about $55 billion this year, which would be the lowest level since 2002.”

In both quarters, Alaska had negative GDP growth, putting its economy into a recession.

More than half of states in the United States saw their GDP growth decline from the third quarter of 2015 to the fourth quarter.

The states that saw the largest declines from the previous quarter were Oklahoma, Wyoming, New Mexico, and Montana.

“Today’s weak GDP numbers out of the states are yet another sign of a persistently sluggish economy that is leaving many Americans behind,” said Alfredo Ortiz, president and CEO of the Job Creators Network.

http://freebeacon.com/issues/eight-s...k-4th-quarter/

Texas economy still struggling

Report from Dallas Fed finds Houston economy still hurting

Houston, TX

By ALEX WUKMAN (Patch Staff) -
June 9, 2016 7:00 am ET

A recent report from the Federal Reserve Bank of Dallas found that Texas service sector activity continued to reflect expansion in May.

The report surveyed business executives throughout the state and found that the revenue index, a measure of service sector conditions, dropped from 10.6 in April to 5.8 in May.

Labor market indicators were mixed in May. Although the employment index remained positive, it edged down from 6.3 to 4.5, indicating slower employment growth. The hours worked index fell almost 4 points into negative territory to a reading of -1.3, suggesting shorter workweeks.

Part of the reason for shorter weeks comes from employer anxiety about recent U.S. Department of Labor changes to the federal Fair Labor Standards Act's (FLSA) overtime exemptions. On May 18, the Department of Labor updated regulations to more than double the salary threshold for claiming exemption from overtime, from $23,366 annually to $47,476.

Multiple executives across various fields told the banks that the new overtime regulations will "have a siginificant negative impact" on business.

A professional, scientific and technical services executive described the new regulations as "not a positive at all."

Perceptions of broader economic conditions worsened in May. The general business activity index was negative for a fifth consecutive month, declining from -3.7 in April to -7.1 in May. The company outlook index retreated 10 points into negative territory to a reading of -2.9, with 13 percent of respondents reporting that their outlook improved from last month and 16 percent noting that it worsened.

A pessimistic outlook was particularly present in Houston industuries related to housing and the provision of home services. COntinual declines in oil prices, West Texas Intermediate closed at $50.36 on Wednesday, has plunged Houston's economy into a regional recession.

The Houston metro area has a 4.8 percent unemployment rate, according to the Texas Workforce Commission. Halliburton and Schlumberger, two large scale employers, have shed 33,000 and 40,000 jobs respectively.

The loss of jobs has led to a decline in real estate sales, with Miami-based Lennar Corp., the biggest builder in Houston, reporting a 3.5 percent decline in new home orders for the first quarter of 2016.

One rental company reported to the Dallas Fed that their returns dropped from a year-to-year net gain of 7.5 percent for the first quarter to a net loss of 2 percent year to date in April.
"That is what is going on out here in the real world, dang little! We are a 56-year-old family-owned company," the rental executive said. "This economy is in and headed deeper into the tank faster than all the talking heads can spin their silly data and metrics to portray the story most beneficial to whatever lines their pockets best today."

For telecommunication providers, which rely on customer density to offset the cost of infrastructure installation, the housing decline has become a threat to their business model.

"Home, apartment and business vacancies are rising, while the cost to provide services continues to increase," one telecommunications executive told the Dallas bank. "The FCC [Federal Communciations Commission] continues to ignore the rising cost to provide customers programming/video."

Price and wage pressures eased this month. The selling prices index fell slightly from 6.5 to 4.4. The wages and benefits index dipped from 16.9 to 14.7, although the majority of firms continued to note no change in compensation costs.

Respondents’ expectations regarding future business conditions reflected less optimism in May. The index of future general business activity inched down from 2.3 to 1.3. The index of future company outlook fell from 14.6 to 6.3. Indexes of future service sector activity, such as future revenue and employment, also reflected less optimism this month.

http://patch.com/texas/houston/texas...ill-struggling

California Senate approves another minimum wage hike


6/1/15

California Overtakes France to Become Sixth-Largest Economy

Alison Vekshin alisonvekshin
June 14, 2016 — 3:43 PM PDT


Buildings stand in the skyline of downtown in this aerial photograph taken above San Francisco on Oct. 5, 2015.

Photographer: David Paul Morris/Bloomberg

• Golden State buoyed by technology, agriculture, manufacturing
• Healthy economy and exchange-rate movement fueled growth

California has overtaken France as the world’s sixth-largest economy, fueled by strong growth and the U.S. dollar’s gains against foreign currencies, state data released Tuesday show.

The most-populous U.S. state, with a gross domestic product of $2.5 trillion, has also eclipsed recession-plagued Brazil.

“This is the result of both good growth in California and exchange-rate movements of the U.S. dollar versus other currencies,” said Irena Asmundson, chief economist in the California Department of Finance.

Governor Jerry Brown, 78, is running the state during an economic turnaround driven by technology companies including Facebook Inc. and Apple Inc., along with agricultural and manufacturing industries that lead the U.S. Since taking office in 2011, Brown steered the state away from fiscal turmoil and persistent deficits to budget surpluses.



California grew by 4.1 percent in 2015, compared with a 2.4 percent increase for the U.S. and 1.1 percent for France, Asmundson said.

Last year, California created the most jobs of any state, more than the second- and third-most-populous states Florida and Texas combined. Four of the world’s 10 largest companies are based in California, including Alphabet Inc. and Facebook.

http://www.bloomberg.com/politics/ar...argest-economy

Fine...they are a "sanctuary" State and ALL Federal Funding should be cut off immediately. That goes for the ENTIRE State that has any sanctuary cities...aiding and abetting illegal Criminal Trespassers! Your State is NOT above the Law. Cut off the $$$$.

No papers...no entry...no rights!

"Operation Return to Sender"