Metro Denver Midyear Update: Slow going ahead

DENVER – The Metro Denver Economic Development Corp.’s
Midyear Economic Forecast is predicting less than 1 percent employment growth
in the state for the remainder of the year and unemployment reaching a high of
8.8 percent.

 The report by Development Research Partners said
Colorado’s year-over-year employment gain in July of 0.7 percent ranked
33rd-fastest among the 44 states that reported growth. The report noted the
state’s seasonally adjusted unemployment rate of 8.5 percent was higher than 28
other states.

 “The state has a vibrant private sector with a
proven ability to grow and attract investment, and Colorado’s distinct
concentration of entrepreneurial activity will help spur growth,” the
report said. “However, significant headwinds from the public sector and
the still-harsh economic climate for startups mean overall employment growth
will remain unimpressive this year.”

 The report also made several specific forecasts for the
seven-county Denver metro area, including:

• Employment growth at 0.5 percent will be too slow to
  reduce unemployment noticeably.
• Retail trade sales growth will reach a modest 5.5
  percent, or 2.3 percent on an inflation-adjusted basis.
• Home sales will increase a modest 0.6 percent.
• Median home prices will decline 0.8 percent to
  $230,600.
• The number of building permits will increase 8.5
  percent.
• Foreclosures will decline 29.5 percent.

The full report is available through the Metro Denver EDC website at www.metrodenver.org.

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