Slowing economy but no recession

The slumping housing market and rising foreclosures will continue to erode California's economy until late next year or early 2009, but UCLA forecasters still maintain it will not tug the state into recession, according to a report released this morning. Gregory J. Wilcox in the Daily News.

That's because most business sectors will experience job growth, albeit anemic, said the quarterly UCLA Anderson Forecast that takes a more cautionary tone than past assessments.

"With housing as weak as it is, the rest of the economy is going to keep its head above water. This is the glass is half full kind of a take," said University of California, Los Angeles, senior economist Ryan Ratcliff, author of the California report.