SAN JOSE, Calif., Jan. 28 /PRNewswire-FirstCall/ -- The recovery of the national economy and the California economy out of the recession will accelerate this year, marked by increases in incomes, consumer spending and jobs, two economists agreed today at the annual Comerica Bank Economic Forecast Conference in Santa Clara, Calif.
"I really think we are going to have a sustained recovery," Dana Johnson, Comerica Bank's chief economist, told approximately 600 Silicon Valley business leaders assembled at the Santa Clara Convention Center this morning. "It's extremely unlikely that this economic expansion is going to falter."
Stanford University economist Lawrence Goulder agreed, but cautioned that productivity increases during the recession could slow the pace of new hiring in 2010 for many companies.
"I am highly confident that as we move through the first half of 2010, that we will get job growth, and that that growth will accelerate," Johnson said. He added that "You're going to see job growth in California, just as you will in the nation."
Johnson, who began publishing the monthly Comerica Bank California Economic Activity Index last year, reported that housing prices in California bottomed out in 2009 and that all indicators suggest a rebounding economy. Despite the expansion of new jobs, he said unemployment rates would remain high, and that the "California labor market will remain strained for a number of years."
The two economists agreed that actions by the U.S. government had helped prevent economic disaster and fuel the initial recovery. "We would have had a deeper and longer recession if we hadn't had the stimulus package," said Johnson, agreeing with the assessment presented to Congress Wednesday by President Obama.
About Comerica Bank
Comerica Bank is a subsidiary of Comerica Incorporated, a Dallas-based company strategically aligned into three major business segments: the Business Bank, the Retail Bank, and Wealth & Institutional Management. Comerica focuses on relationships and helping businesses and people be successful. In addition to Arizona and California, Comerica Bank locations can be found in Florida, Michigan and Texas, with select businesses operating in several other states, Canada, China and Mexico. Comerica reported total assets of $59.3 billion at Dec. 31, 2009. For more information, go to www.comerica.com. To see copies of Dana Johnson's economic reports, go to www.comerica.com/economicinsights
SOURCE Comerica Bank