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2009 Preview: Tough, But Better Than 2008

The good news for 2009 is that economists see a better year than 2008 for Orange County. The bad news is things might not feel a whole lot better.

The Business Journal takes a look at what to expect for the county’s economy and major industries in Monday’s print edition.

The county is projected to see another year of job losses, falling home prices, little construction, fewer tourists and falling sales of autos and building materials.

But none of the projected declines are seen as being as bad as in 2008.

Next year, employment is expected to fall by 9,130 jobs, or by 0.6% to 1.48 million workers, according to economists at Chapman University.

This year, the county’s on track to lose about 24,000 jobs, a 1.3% decline that’s the worst since the early 1990s.

The downturn is predicted to hold for the first half of 2009 with a subtle rebound later, according to economists at Chapman University and California State University, Fullerton.

2009 could be a transition year in which the bloodletting of 2008 gives way in earnest to acquisitions and other deals as companies and investors jump on bargains.

The housing market is likely to see further cleansing next year as foreclosed homes dominate sales as they have this year.

Fear seems to be turning to commercial real estate, where some predict a wave of falling prices, bad loans, foreclosures,and opportunities for investors.

Unlike the last recession earlier this decade, technology is projected to hold up better than other sectors with growth, albeit slower than in years past.

For a look at the county’s nine key industries see the Dec. 15 edition of the Business Journal.

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