California Business Minute™

Hi, I am Tim Johnson and welcome to the California Business Minute.

The Southern California economy is on an upswing according to a new report from the
Institute for Economic and Environmental Studies at Cal State Fullerton's Mihaylo
College of Business and Economics.

The Southern California Leading Economic Indicator rose by 0.75 percent in the second
quarter to 99.03, up from a revised 98.3 in the first quarter, its third consecutive
increase that covers Imperial, Los Angeles, Orange, Riverside, San Bernardino and
Ventura counties.

"Overall, it's a positive sign, because this is the first quarter since 2005 that
we've seen three increases in a row in the indicator," said Adrian Fleissig, Ph.D.,
author of the report.

Civilian employment also rose by 0.85 percent in the period, marking the second
consecutive uptick, according to the study.

"We are seeing an increase in employment in contrast to the last three quarters of
2009, when there were large decreases," said Fleissig. "But, it's still not clear
whether an increase in economic activity will lead to an overall increase in
employment. There may be increases in some sectors ... but not necessarily all."

Meanwhile, five of the seven measures that comprise the index had a positive impact
on it. They include the increase in the money supply, Pacific Region consumer
confidence index, regional building permits, change in the interest rate spread and
regional nonfarm employment. Meanwhile, negative factors include the decline in the
Standard & Poor's 500 stock index and an increase in regional unemployment.

I am Tim Johnson and this has been the California Business Minute.