{"id":496405,"date":"2026-10-15T01:10:12","date_gmt":"2026-10-15T01:10:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ca\/496405\/"},"modified":"2026-10-15T01:10:12","modified_gmt":"2026-10-15T01:10:12","slug":"gov-gavin-newsom-paints-optimistic-picture-of-californias-economy-press-telegram","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ca\/496405\/","title":{"rendered":"Gov. Gavin Newsom paints optimistic picture of California\u2019s economy \u2013 Press Telegram"},"content":{"rendered":"

With less than three months left in office, Gov. Gavin Newsom<\/a> reflected on California\u2019s economic successes over the years during a trip to Los Angeles County on Wednesday, Oct. 14.<\/p>\n

In a fireside chat at the California Economic Summit in Long Beach, the outgoing governor rattled off statistics that set the state apart before touting an economic plan the state adopted<\/a> last year and touching briefly on the mindset he believes the next governor<\/a> should embrace.<\/p>\n

\"Governor<\/p>\n

Governor Gavin Newsom participates in a fireside chat with former chief economic advisor Lenny Mendonca to discuss the state\u2019s economic success and the future of its economy at the 15th annual California Economic Summit in Long Beach on Wednesday October 14, 2026. (Photo by Axel Koester, Contributing Photographer)\n<\/p>\n

\"Governor<\/p>\n

Governor Gavin Newsom participates in a fireside chat with former chief economic advisor Lenny Mendonca to discuss the state\u2019s economic success and the future of its economy at the 15th annual California Economic Summit in Long Beach on Wednesday October 14, 2026. (Photo by Axel Koester, Contributing Photographer)\n<\/p>\n

\"Governor<\/p>\n

Governor Gavin Newsom participates in a fireside chat with former chief economic advisor Lenny Mendonca to discuss the state\u2019s economic success and the future of its economy at the 15th annual California Economic Summit in Long Beach on Wednesday October 14, 2026. (Photo by Axel Koester, Contributing Photographer)\n<\/p>\n

\"Governor<\/p>\n

Governor Gavin Newsom participates in a fireside chat with former chief economic advisor Lenny Mendonca to discuss the state\u2019s economic success and the future of its economy at the 15th annual California Economic Summit in Long Beach on Wednesday October 14, 2026. (Photo by Axel Koester, Contributing Photographer)\n<\/p>\n

\"Governor<\/p>\n

Governor Gavin Newsom participates in a fireside chat with former chief economic advisor Lenny Mendonca to discuss the state\u2019s economic success and the future of its economy at the 15th annual California Economic Summit in Long Beach on Wednesday October 14, 2026. (Photo by Axel Koester, Contributing Photographer)\n<\/p>\n

\"Governor<\/p>\n

Governor Gavin Newsom participates in a fireside chat with former chief economic advisor Lenny Mendonca to discuss the state\u2019s economic success and the future of its economy at the 15th annual California Economic Summit in Long Beach on Wednesday October 14, 2026. (Photo by Axel Koester, Contributing Photographer)\n<\/p>\n

\"Governor<\/p>\n

Governor Gavin Newsom participates in a fireside chat with former chief economic advisor Lenny Mendonca to discuss the state\u2019s economic success and the future of its economy at the 15th annual California Economic Summit in Long Beach on Wednesday October 14, 2026. (Photo by Axel Koester, Contributing Photographer)\n<\/p>\n

\"Governor<\/p>\n

Governor Gavin Newsom participates in a fireside chat with former chief economic advisor Lenny Mendonca to discuss the state\u2019s economic success and the future of its economy at the 15th annual California Economic Summit in Long Beach on Wednesday October 14, 2026. (Photo by Axel Koester, Contributing Photographer)\n<\/p>\n

\"Governor<\/p>\n

Governor Gavin Newsom participates in a fireside chat with former chief economic advisor Lenny Mendonca to discuss the state\u2019s economic success and the future of its economy at the 15th annual California Economic Summit in Long Beach on Wednesday October 14, 2026. (Photo by Axel Koester, Contributing Photographer)\n<\/p>\n

\"Governor<\/p>\n

Governor Gavin Newsom participates in a fireside chat with former chief economic advisor Lenny Mendonca to discuss the state\u2019s economic success and the future of its economy at the 15th annual California Economic Summit in Long Beach on Wednesday October 14, 2026. (Photo by Axel Koester, Contributing Photographer)\n<\/p>\n

Show Caption<\/p>\n

1 of 10<\/p>\n

Governor Gavin Newsom participates in a fireside chat with former chief economic advisor Lenny Mendonca to discuss the state\u2019s economic success and the future of its economy at the 15th annual California Economic Summit in Long Beach on Wednesday October 14, 2026. (Photo by Axel Koester, Contributing Photographer)\n<\/p>\n

Expand<\/a><\/p>\n

California generates 18% of the world\u2019s research and development \u2014 surpassed only by China and Germany \u2014 and offers wages that are 20% higher than the rest of the nation while producing about a quarter of the jobs in the country in August and boasting a 40% growth in gross domestic product since 2019, Newsom said.<\/p>\n

\u201cNo other jurisdiction in the world can lay claim to that GDP growth, at least (a) developed nation. That\u2019s greater than any other state and greater than the nation,\u201d he said.<\/p>\n

Newsom spent much of his roughly 25-minute chat with Lenny Mendonca, the governor\u2019s former chief economic and business advisor, touting the California Jobs First Economic Blueprint<\/a>.<\/p>\n

The blueprint, released last year, is intended to guide investments in key sectors to spur economic growth, innovation and access to good-paying jobs in all 13 regions of California over the next decade.<\/p>\n

The plan, which includes $245 million in state investments, was more than three years in the making and reflects ideas taken from 13 regional plans developed by stakeholders in different parts of California.<\/p>\n

Newsom credited attendees at Wednesday\u2019s economic summit for helping the state build its strategy.<\/p>\n

\u201cYou cannot have an economic strategy that\u2019s sent down from Sacramento. It\u2019s got to be set up from these diverse regions,\u201d he said.<\/p>\n

Newsom\u2019s overall optimistic reflection about California\u2019s economy came in a moment when many people in the state and across the country are still struggling amid record-high gas prices and tariffs that have increased the costs of goods.<\/p>\n

What economic reports say<\/p>\n

Earlier Wednesday, the federal government\u2019s latest inflation report dropped, showing consumer prices had risen by 3.7% in the past year. That was felt across many sectors, the report from the U.S. Department of Labor<\/a> showed, including increased prices for gas and utilities. On a monthly basis, costs jumped 0.6% from August to September, the biggest gain in five months, up from a 0.4% increase the previous month.<\/p>\n

The figures underscore the lingering impact of the Iran war on gas prices and the stubborn persistence of inflation, which has ticked higher since the war began in late February. The rise isn\u2019t all linked to oil and gas, as surging investment in data centers and AI has also pushed up prices for computer chips and the consumer electronics that use them.<\/p>\n

And according to the New York Times<\/a>, data from the federal government also showed that while inflation surged, workers have not experienced any wage growth since January 2025.<\/p>\n

Newsom avoided focusing his remarks on the negative aspects of the economy, though he acknowledged the state\u2019s \u201cstubborn\u201d unemployment rate of 5.1%.<\/p>\n

And some recent economic reports appear to underscore his relatively optimistic outlook for California.<\/p>\n

The state\u2019s economy has dodged the effects of tariffs imposed by the Trump administration since early 2025, as well as inflation and higher energy prices caused by the U.S. led war in Iran that disrupted the Strait of Hormuz. About a fifth of the world\u2019s crude oil is moved through the narrow Middle Eastern waterway.<\/p>\n

Despite all of the disruptions in the world, an economic forecast published last month<\/a> by the UCLA Anderson School of Management found that the state\u2019s economic growth has remained resilient.<\/p>\n

The report said the forecast has shifted considerably over the course of the year, with the state\u2019s economy boosted significantly by investments in artificial intelligence and a growing defense budget.<\/p>\n

Earlier this year, economists at Chapman University<\/a> said a war with Iran could have a positive overall impact on the U.S. economy, creating trickle-down benefits with a boost in military spending for Southern California\u2019s military contractors.<\/p>\n

The economists \u2014 including James Doti, Raymond Sfeir and Fadel Lawandy \u2014 noted that defense contractors in Southern California, including Costa Mesa-based Anduril Industries, Hawthorne-based SpaceX and several others, would benefit from the conflict.<\/p>\n

UCLA said in its report that the state\u2019s economy grew at an annual rate of 3.7% in the first quarter of 2026.<\/p>\n

Still, the state\u2019s economy has been hurt by a weak labor market, the university said.<\/p>\n

California\u2019s unemployment rate stood at 5.1% in August, the highest of any state. \u201cThe \u2019employment recession\u2019 identified by the forecast six months ago has continued, even though California has outperformed the nation in the production of goods and services,\u201d the UCLA report said.<\/p>\n

What\u2019s next<\/p>\n

On the topic of his successor, Newsom said he hopes the next governor will approach the job with a mindset that embraces a \u201cspeed of change.\u201d<\/p>\n

Newsom, who is wrapping up his eighth year as governor, said he didn\u2019t have the \u201cpolitical capital\u201d in his first few years in office to move things along more quickly. But in the last two years, his administration, in working with the legislature, was finally able to make land-use zoning reforms and change regulations in order for housing to be built more quickly, he said.<\/p>\n

\u201cThe first few years, we made a lot of good progress, but we were missing the Holy Grail. We finally just hit peak, and I rolled the dice,\u201d Newsom said.<\/p>\n

Last year, the state passed California Environmental Quality Act reform bills<\/a> to speed up housing production while reducing costs.<\/p>\n

Although the next governor will inherit a surplus in the budget, that money is one-time, Newsom said, adding that he\u2019s worried about the state of the economy a year from now.<\/p>\n

Newsom encouraged the business leaders assembled at Wednesday\u2019s economic summit to demand from the next governor that the progress the state has already made with the California Jobs First blueprint continue.<\/p>\n

\u201cI would demand as part of the surplus that we continue to invest these one-time dollars in a lot of your work at the local level,\u201d Newsom said. \u201cI\u2019d demand a big damn set aside in that.\u201d<\/p>\n

SCNG\u2019s Kaitlyn Schallhorn and The Associated Press contributed to this report.<\/p>\n","protected":false},"excerpt":{"rendered":"With less than three months left in office, Gov. Gavin Newsom reflected on California\u2019s economic successes over the…\n","protected":false},"author":2,"featured_media":496406,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[33],"tags":[387,7,400,457,131,133,132,137,100,13,136],"class_list":["post-496405","post","type-post","status-publish","format-standard","has-post-thumbnail","category-long-beach","tag-business","tag-california","tag-california-politics","tag-gavin-newsom","tag-long-beach","tag-long-beach-headlines","tag-long-beach-news","tag-los-angeles-county","tag-news","tag-politics","tag-top-stories"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/496405","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/comments?post=496405"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/496405\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media\/496406"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media?parent=496405"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/categories?post=496405"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/tags?post=496405"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}