Federal Reserve Bank of San Francisco

Economic Research

Western Economic Development March 1996

Date of Publication: 1996-03-01


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Executive Summary

  • Recently revised payroll employment figures reveal solid Twelfth District economic performance in late 1995 and early 1996, spurred by job growth in California that accelerated over much of 1995. In addition, the District still contains four of the five fastest-growing states in the nation. Rapid expansion in the service, trade, and construction sectors accounts for much of recent District employment growth. Manufacturing activity also has been solid, particularly in the electronics sector, although there are signs of reduced semiconductor demand.
  • Early in the California recovery, employment growth was concentrated in several sectors that expanded rapidly nationwide. Employment growth during 1995, however, was more broad-based.
  • Data from a sample of large District banks indicate that total loans outstanding increased during January and February at a rate markedly higher than in the fourth quarter of 1995. This was primarily driven by growth in California, although growth was slower there than during the state’s mid-1995 peak.