New-business filings slow in third quarter
Colorado new-business filings decreased 2.1 percent in the third quarter compared with the second quarter — the slowest growth rate in the last four years.
That’s according to a report released Friday by Colorado Secretary of State Jana Griswold.The quarterly report is prepared by the Business Research Division of the University of Colorado Boulder Leeds School of Business.
The quarterly report revealed that 31,105 new corporations, nonprofits and other entities filed initial documents with the secretary of state’s office. The filings are up 0.3 percent from the third quarter of 2018.
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Filings by existing entities remain strong, increasing 3.9 percent from the same period a year ago, with 142,020 third-quarter renewal filings.
The report indicates that Colorado’s employment growth will continue to grow over the next six months.
“Colorado’s economy continues to lead the nation in wage growth and employment, though growth is showing signs of slowing,” Griswold said in a prepared statement. “I am happy to see that Colorado’s economy should grow through the end of the year and into 2020, even as business leaders are more pessimistic with economic uncertainty.”
Dissolution filings fell 6.8 percent from the second quarter, though they were up 3.7 percent from the same period last year.
Colorado’s wage growth outpaced the nation in the third quarter, increasing 3.3 percent compared with 3 percent nationally.
“Although slowing is the word of the day, Colorado still has one of the stronger economies in the U.S. with year over year employment growth at 2%,” said Richard Wobbekind, executive director of the Leeds Business Research Division.
The report cites several other indicators for the Colorado economy:
- Nationwide initial jobless claims continued a downward trend in September, according to the Bureau of Labor Statistics, decreasing 7.5 percent annually. Job growth in Colorado continues as national employment growth stagnates.
- Colorado business leaders are turning less optimistic about the economy. The latest Leeds Business Confidence Index slipped below the neutral mark for the first time in several years, with business leaders most pessimistic about the national economy due to political and trade concerns.
- Building permits decreased 1.4 percent across Colorado over the last year, with single-family and multifamily permits decreasing.
