Excerpt from: Do Business in Vail!
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| August 22, 2008 | | Experts share thoughts on Colorado's economy | Mountain Region economic forecast excerpts
Go to http://www.state.co.us/gov_dir/leg_dir/lcsstaff/lcs/chronicle/2008/August08/0808Chronicle.pdf for the full report.
By Todd Herreid
Compared with the rest of the state, the mountain region appears to be performing slightly better. The region's job growth was stronger than the statewide average and construction activity in some areas was positive. Consumer spending advanced at the same pace as the rest of the state.
Employment in the region increased 2.3 percent through June 2008, slowing from 3.0 percent growth in 2007. Summit, Eagle, Lake, and Routt counties had job growth of 3.3 percent or greater in the first half of the year, while Chaffee and Jackson counties experienced job losses. Corresponding with the region's slower employment growth, the unemployment rate increased to 4.4 percent in June. In all of 2007, the unemployment rate averaged 3.1 percent.
While residential construction has been weak throughout most of the state, the mountain region has seen mixed results. Housing permits in Routt County increased 40.0 percent in 2007 and were up 29.3 percent through June 2008. However, the growth in Routt County is from multi-family housing, not single-family housing. In contrast, housing permits in Eagle, Pitkin, and Summit counties decreased 55.9 percent through June, with both single-family and multi-family housing permits declining.
Nonresidential construction was also somewhat mixed. The value of nonresidential construction permits in Eagle, Pitkin, and Summit counties was relatively flat, while permits declined 40.9 percent in Routt County. On a positive note, the drop in Routt County can be attributed to several large capital projects that were permitted in 2007.
Consumer spending, measured by retail trade sales, is slowing like other areas of the state. In the first five months of the year, retail trade sales were up 3.8 percent compared with the same period last year. This matches the statewide average. Although several smaller counties experienced double-digit growth rates, some of the larger counties experienced sluggish growth. Retail trade sales in Eagle and Pitkin counties increased 5.0 percent and 2.5 percent respectively, while sales in Summit and Routt counties were relatively flat. | | |
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