Banking & Finance  September 11, 2007

Colorado’s 2008 outlook gloomy

DENVER – Colorado’s economy will mirror the nation’s in 2008 with employment growth slowing and unemployment rising, according to a report from U.S. Bank.

The report, authored by Tucker Hart Adams, U.S. Bank’s chief economist, predicted the state’s employment growth in 2008 will slow to 0.5 percent, or 11,500 new jobs, compared to an expansion rate of 1.5 percent, or 35,000 new jobs, in 2007. Adams also predicts the state’s unemployment rate will rise to 4.8 percent in 2008 compared to a 3.9 percent estimated rate for this year.

Adams said Colorado’s population is expected to pass 5 million in 2008, with an estimated 63,000 new residents coming to the state. While per capita personal income is predicted to rise by 2.9 percent to $41,976 statewide, Adams said rising mortgage payments along with a lack of growth in real (inflation-adjusted) income for many residents will cause consumers to spend less in 2008 than in 2007, with total retail sales expected to rise just 3.9 percent compared to an estimated 7.6 percent this year.

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Adams said the worst of the housing recession will be over by the end of 2008 with permits falling another 7.1 percent.

“Because Colorado has not experienced the speculative home-price appreciation that has taken hold in other parts of the country, the recession will not be as deep here as in some other regions,” Adams said. “However, with the exception of the Grand Junction market, which will grow as long as (energy) drilling activity continues, Colorado will follow the U.S. economy into recession and remain there until the national recovery gets under way.”

DENVER – Colorado’s economy will mirror the nation’s in 2008 with employment growth slowing and unemployment rising, according to a report from U.S. Bank.

The report, authored by Tucker Hart Adams, U.S. Bank’s chief economist, predicted the state’s employment growth in 2008 will slow to 0.5 percent, or 11,500 new jobs, compared to an expansion rate of 1.5 percent, or 35,000 new jobs, in 2007. Adams also predicts the state’s unemployment rate will rise to 4.8 percent in 2008 compared to a 3.9 percent estimated rate for this year.

Adams said Colorado’s population is expected to pass 5 million in 2008, with…

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