Home construction drags on small business

DENVER – The Vectra Bank Colorado Small Business Index for June dropped to 90.6 from 91.0 in May, reflecting in part a slowdown in new house construction.

“Colorado single-family housing starts surpassed the 40,000 level in both 2004 and 2005,´ said Jeff Thredgold, Vectra bank Colorado’s corporate economist. “Last year saw housing starts slow to just over 30,000. This cooling in the residential construction sector impacts more than just those small businesses directly involved in construction. Small businesses that supply residential construction companies are also feeling the pinch, as are related businesses, such as title companies and mortgage lenders.”

But Thredgold noted…