Spending Surge to Last Through '90
The present surge in retail spending by California residents will continue through 1990, with Los Angeles County leading the state, according to an economic study released by the Palo Alto-based Center for Continuing Study of the California Economy.
The report, which ranks the growth prospects for each county for 1990 and 1995 in terms of income, retail sales, population and household growth, said that Los Angeles County will remain the state's largest market with nearly $150 billion in personal income.
The report also projects that statewide spending will increase by 32% over the next five years.
"There is really a resurgence in Los Angeles," said senior economist Stephen Levy, who conducted the study. "It's primarily because Los Angeles is the first residence of choice for Spanish and Asian immigrants."
Levy added that more than 50% of the growth in California's population in the next five years will be in the Latino and Asian population groups. Total population in California is projected to reach 28.6 million in 1990, an increase over the July 1, 1984, estimate of 25.6 million.
In addition, the report said that the largest percentage gains in population, income and retail spending will come in the state's inland counties, including San Bernardino, San Joaquin, Riverside and Kern counties.
"San Bernardino and Riverside counties are now the suburban ring from which people commute to the growing number of jobs in the Los Angeles basin," Levy said, adding that all four counties will have spending increases of more than 70% by the end of the decade.
Orange and San Diego counties were ranked second and third behind Los Angeles in projected personal income among the state's 10 largest counties with $42.2 billion and $36.3 billion, respectively.
The center, which is a private research organization established in 1969, has been conducting the California survey since 1977.