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Colorado Economic Outlook Written
by Jeff Thredgold, President, Thredgold Economic Associates Outside Forces
Slower Colorado economic growth during 2008 is a departure from the stronger performance that occurred during 2005 through 2007. The Colorado economy added an average of 50,000 net new jobs annually during those three years, an average annual gain of 2.2%. In contrast, Colorado employment is rising at half that pace during the most recent 12-month period. The Neighbors Colorado’s new home construction sector remains extremely weak, with a loss of 5,300 construction jobs during the past year. Related sectors supporting real estate sales and real estate finance are also recording job eliminations. The state’s manufacturing sector has lost 4,200 jobs during the most recent 12-month period. In contrast, the education & health services sector added 9,500 net new jobs during the past year, while government added 7,100 net new jobs. Leisure & hospitality added 5,800 net new jobs, while the professional & business services sector added 4,300 jobs. Trade, transportation & utilities added 2,800 net new jobs during the past 12 months. As one might expect, natural resources & mining
has been the strongest job growth sector, with the addition of 3,400 net
new jobs, a rise of 13.2%.
Credit Stress Aggressive and historic moves by the U.S. Treasury Department to help rid large investment and commercial banks of “toxic” real estate assets and replenish working capital should help restore rational domestic and global credit markets, a key ingredient in moving U.S. housing markets into growth mode by mid-to-late 2009. A number of Colorado commercial real estate projects announced over the past 2-3 years have quietly been mothballed, while others continue on a smaller scale. At the same time, however, a significant number of projects continue to take shape. Winter Sports Costs Of… The “cost of living” estimate of Economy.com for Denver was 100% of the U.S. average, with Colorado Springs at 95%. The most recent data from the ACCRA cost of living index registered 104.9 for Denver-Aurora, with Boulder at 125.1 and Colorado Springs at 93.2. Fort Collins-Loveland measured 94.8, with Grand Junction at 101.0. Greeley was 96.5, with Pueblo at 86.5 and Gunnison at 118.8. Colorado View However, the state’s attractive cost of doing business, strong population growth, employment diversity, and great recreational opportunities should again see Colorado rank among the nation’s stronger performers over a longer time horizon. |
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