SACRAMENTO, CA - The Sacramento region's economy may have bottomed out, according to a forecast released Wednesday.
The report by the California State University Sacramento's College of Business Administration and the Chartered Financial Analyst Society of Sacramento is "optimistic about the prospects of job growth for this coming year."
The report points out an improving trend in job growth in Sacramento, with unemployment down to 10.9 percent from 12.6 percent a year ago.
One reason for the optimism is improved access to credit.
"The SBA lending activity to small businesses more than doubled this past year, which is a very good sign for small businesses," CSU College of Business Administration Dean Dr. Sanjay Varshney said.
The forecast suggests the hemorraghing of private sector jobs may be easing.
"I think, finally we've seen some hopes, even in the government sector that much of their downsizing or the furlough situation might be behind us," Varshney said. "The question is, can they fix the budget issues going forward."
But the forecast cautions that many factors, including the European debt crisis and the still-crippled real estate market, could derail the turnaround.
"Any major shock to the system could easily send us back into kind of a recession mode, so we want to be careful about our hopes going forward," Varshney said.