Sonoma County is lagging behind the California economy, but there are signs of improvement, an economist told about 400 government and business leaders Friday morning.
“The California economy is ahead of the curve. Sonoma is going to start feeling that over the next year or so,” said Chris Thornberg, a founding partner of Beacon Economics.
“I guarantee by the time I come back here next year to give this speech, you're going to be happier folks in this room. Not a lot happier, but happier,” he said.
Thornberg was one of the first to predict the housing market crash and subsequent recession. And on Friday, he was optimistic about the state of the economic recovery.
He noted that in Sonoma County, industrial, office and retail vacancies are starting to fall, a sign of economic improvement.
“Things ain't that bad, which is obviously a big change for me,” Thornberg said. “I came here seven years ago, and I was grouching about consumers, and grouching about how we were going to go through some tough times.
“In the last six months, I find myself in a completely different position.”
In California, exports grew 30 percent in 2011, compared to the same period last year, with exports to Mexico leading the way.
Thornberg said he does not believe the country is heading into a double-dip recession, because the data doesn't substantiate that claim.
“I don't want to completely dismiss those who continue to talk about the pain in the U.S. economy, because...as far as a recovery goes, this is a lousy one,” Thornberg said.
He said reports of weak consumer confidence don't reflect anything but nonsense, and a better way to view the economic health of a consumer is through credit card delinquency rates.
“Credit card delinquencies are at the lowest level ever in the U.S. economy right now,” Thornberg said. “The American consumer, just fine.”