IRVINE, CA--(Marketwire - October 28, 2010) - 2011 may be the year of two new "R" words -- recovery and reform -- according to the Economic Forecast Conference held today by the Orange County Business Council (OCBC) and Cal State Fullerton's Mihaylo College of Business and Economics. The 16th annual event featured an overview of the current state of the economy, with specific analysis of the outlook for the business climate in Orange County and Southern California.
Today, Dr. Anil Puri, Dean of Cal State Fullerton's Mihaylo College, presented his analysis of the latest economic issues and trends to a sold out audience of 920 business and academic leaders from throughout Southern California at the Hyatt Regency Irvine.
"In the first half of the year, the recovery was driven primarily by remarkable government largesse and a robust inventory cycle," stated Dr. Puri. "For a sustained expansion however, consumption in the private sector -- household spending and business investments -- will need to take over."
According to the report, in Orange County and Southern California, as in the nation, the economy will not relapse into recession, but instead continue to heal in what they have called "a recovery of two halves," wherein the second half growth will move forward at a rate above stall speed, but still too slow to make a significant difference to the jobless rate. The summer scare should be viewed as a temporary stalling of a continued recovery, though the process forward has downshifted from "moderate" to "modest."
In the "recovery of two halves" scenario, the report focuses on three elements:
- Dragging fundamental forces (labor, consumption, household finance, housing market)
- Dimming bright spots (fiscal/monetary policy, investments, production, global environment)
- Bright spots (corporate sector, financial sector, inflation)
In addition to Dr. Puri's report, Richard Davis, Chairman, President and Chief Executive Officer of U.S. Bancorp, addressed the current state of banking and what the future holds for financial institutions. Referring to the recent economic slowdown, "We need courage," Davis noted. "As the economy struggles, banks are fulfilling the needs of the people. We are vested with that responsibility."
Mr. Davis is currently chairman of one of the nation's most powerful lobbying groups, the Financial Services Roundtable, representing the top 100 U.S. banks. "We want people to know that banks are still here to achieve in consumers' investment future," said Davis. "The industry is capable of being a good steward of consumers' resources."
Visit www.ocbc.org or contact Dan Nasitka at 949.794.7245 or email dnasitka@ocbc.org for further information on the event. Copies of Dr. Puri's report are available by contacting Karen Emas at 657.278.2592 or email kemas@fullerton.edu..
The Orange County Business Council is the leading voice of business in Orange County, California. OCBC represents and promotes the business community, working with government and academia, to enhance Orange County's economic development and prosperity in order to preserve a high quality of life. OCBC serves member and investor businesses with nearly 200,000 employees in Orange County and 2,000,000 worldwide. In providing a proactive forum for business and supporting organizations, OCBC helps assure the financial growth of America's fifth largest county. For more information, visit www.ocbc.org.
Contact Information:
CONTACT:
Dan Nasitka
Communications Specialist
949.794.7245