Sacramento Economy Predictions for 2005
The prospects are a little brighter for the Sacramento economy next year.
Friday, December 31, 2004
Given that there was no job growth in 2004, the Sacramento economy fared pretty well. So it might do that much better in 2005 if the experts’ predictions of a slight pick-up in employment actually occurs. Interest rates are the statistics to watch. Housing sales should be slightly below the red-hot levels of the past few years … which is good … but, if interest rates rise more than expected, it will have a cooling effect on the region’s housing industry. Expect more bad news on government employment and program funding from the State Capitol, as the $8 billion deficit spreads problems … but the regional outlook is fair to good for agriculture, manufacturing, healthcare, and many other industries. What will you see in the news? WalMart expansions and a new arena for the Kings will be hotly debated. The future of Sacramento’s downtown railyards might take a big step forward, if Millennia Associates buys the 240-acre site as planned. And expect a lot of news about the region’s new & existing trade schools, colleges and universities, as they have building plans galore.