California firms continued to attract VC funding at a strong pace, with $17.4 billion of new commitments in the 4th quarter of 2020.
Venture capital is a key funding source for high technology startups and other young firms.
U.S. retail sales grew 5.3% from December to January (seasonally adjusted)—the 4th-largest monthly increase since 1992.
Credit/debit card data suggest CA taxable sales grew by 2% in January but the spending response to recent federal stimulus payments seemed to be weaker in CA than elsewhere.
Revenue collections through January have been well ahead of projections in the recently released 2021-22 Governor’s Budget. After accounting for changes in constitutionally-required spending, we estimate that these higher-than-expected collections represent a roughly $4 billion increase in discretionary state funding relative to the Governor’s Budget.
California new business creation in January was up more than 50 percent over the same month in 2020.
California personal income stayed flat in the third quarter as transfer payments fell, although wages and salaries were up over 2019.
December data was emblematic of the state’s uneven economic recovery from the pandemic.
California recorded 11,611 housing permits in December, by far the biggest monthly total in 2020.
California home price growth continues to outpace national growth, and is now up nearly 10 percent over the past 12 months.
California home sales remained very strong for the fourth straight month.
California lost 52,200 net jobs in December, as the pandemic surge slowed the leisure and hospitality sector.
California withholding collections through January 25 were up 7 percent from the comparable days in 2020, and withholding since March 23 is up 6.1 percent.
A brief look at recent Unemployment Insurance claims and benefits.
December revenue collections from the state’s three largest taxes were ahead of Governor’s Budget projections by $3.0 billion (21 percent).