State´s Economy May Take Upturn In ´03

The recession that hit California in early 2001 is still in effect but the state´s weak economy should start showing signs of renewed vigor during the first half of next year.

The UCLA Anderson Forecast says exports declined during the third quarter of this year and personal income and state revenues continued to fall in the face of higher prices.

However, the study predicts employment, personal income and consumer spending will show slim increases in 2003.

Despite the boost, the study says California still faces a long and painful recovery because of the state government´s unresolved budget shortfall and the high tech industry bust. Economist Tom Lieser, who wrote the study, says he expects that “six months from now things will feel better than they do now, and after that we will see things continue to pick up.”