Forecast: Slow growth to continue for economy

December 5, 2012 7:38:48 AM PST
A report released overnight is predicting the impact of Proposition 30 on the state's economy. The new economic forecast from UCLA has lukewarm predictions for California. The report says jobs and personal income will suffer under Prop 30's tax hikes.

The UCLA Anderson Forecast says housing improvements will help the state and that California will continue to grow, but not as much as it used to. The forecast says the new tax revenues under Governor Brown's Proposition 30 will slow economic growth, but not derail a recovery.

Unemployment is one example; the jobless rate in California should average 10.5 percent by the end of the year, improve to 9.7 percent in 2013 and fall even further, to 8.4 in 2014.

Great news meanwhile on home prices; they surged more than 6 percent in one year -- the biggest jump in six years. The median home price is up $18,000 to $178,600. And, California is one of the top 10 states where prices are rising the fastest.

Also, the Labor Department reports U.S. workers were more productive this summer and they cost their companies less. And, banks are seeing profits again and lending more freely.