SACRAMENTO, Calif. (AP) — The deal to avoid the so-called fiscal cliff in Washington will bring a reprieve to California’s slowly rebounding economy, but uncertainty remains in part because Congress delayed action on federal spending cuts.

H.D. Palmer, Gov. Jerry Brown’s finance spokesman, said Wednesday the agreement helps California avoid sliding back into recession. But economic forecasters say a two-month delay on the so-called sequestration cuts could lead businesses to delay hiring or investments.

One immediate benefit of the New Year’s agreement is that about 400,000 jobless Californians will continue receiving extensions of unemployment benefits.

The deal brought a smaller hit to most people’s pocketbooks. A 2 percent Social Security payroll tax holiday was allowed to expire, but most taxpayers will not see their federal income taxes increase.