Northern/Southern California Business Economic Outlook07.28.2023
A TASI® Bank/SF Business Times study has revealed both common apprehensions and significant differences in the economic outlook in Northern and Southern California.
“Despite difficulties at the peak of the COVID pandemic,” said Dave Joves, president of TASI Bank, “there was a surprising confidence level about the expected recovery and success of their own enterprises. We also believe that many businesses continue to be cautious.”
San Francisco and Los Angeles area companies surveyed ranged in annual revenue from approximately $1MM to $10MM and represented industries, including real estate, construction, architecture, professional or business services, as well as automotive and hospitality cannabis business segments.
Dr. Christopher Thornberg, a Ph. D., and economist at Beacon Economics, joined Joves at a conference hosted by TASI Bank. Thornberg noted that many businesses still see positive signs ahead. Unemployment remains low, and demand for goods and services is strong.
However, Wall Street and Main Street have very different views of the economy.
In Los Angeles, executives are more likely to work with a large regional or national bank than in San Francisco, where relationships with community banks are more common. But, as Thornberg remarked, “It’s a good time to have a great relationship with your banker.”