California Forecaster Says Sluggish Capital Spending Will Delay Recovery.

Byline: Mike Rappaport

Apr. 26--RIVERSIDE, Calif.--The recession is over, but sluggishness in capital spending probably will prevent a solid recovery until at least 2003.

That's what Michael Bazdarich, director of the UC Riverside Forecasting Center, said Thursday in his first-quarter update of the 2002 economic predictions he made in December.

In his four primary December predictions, Bazdarich said the national recession would lift early this year although a strong recovery wouldn't come till 2003, mortgage rates would continue to drop, the Inland Empire and California would avoid the recession and housing would fuel modest growth locally in 2002. …