National: A private survey of economists predicted last month that the U.S. economy would strengthen in the second half of 2003 and continue to expand in 2004 at its fastest pace in four years. (Denver Post, August 12, 2003). This was further emphasized by figures released by the Commerce Department detailing that the economy grew at a 3.1% annual rate in the April-to-June time frame. Consumer, business and military spending are together creating the statistics behind a more optimistic outlook. (Denver Post, August 29, 2003).
| Area | Price: 7/7/03 | Price: 7/21/03 | % change |
|---|---|---|---|
| HEICO Corp. | 4.68 | 3.40 | 37.65 |
| New Frontier Media | 3.27 | 2.60 | 25.77 |
| Carrier Access Corp | 3.35 | 2.77 | 20.94 |
| SpectraLink Corp. | 19.00 | 15.87 | 19.72 |
| Array Biopharma | 3.79 | 3.25 | 16.62 |
| Advanced Energy | 19.37 | 16.74 | 15.71 |
| Microsemi Corp. | 17.15 | 15.25 | 12.46 |
| Maxtor Corp. | 9.85 | 8.82 | 11.68 |
| Ball Aerospace | 48.88 | 44.40 | 10.09 |
Mortgage interest rates continued to rise in August, and consequently the numbers of new home mortgages and refinances have fallen from the numbers of the previous three months. The interest on mortgage rates has risen a quarter of a point in the last month, and more than a point since mid-June. (Denver Post, August 27, 2003).
Regional: The national trend to export jobs to overseas sites and take advantage of cheap labor continues to impact Colorado and the rest of the nation. IBM, Microsoft, and Denver-based Quark Software have announced plans for new jobs?all of which will be located overseas. Over the past few years, Colorado companies such as Storage Technology, Agilent Technologies, Actiontec, Quantum, PeopleSoft, and Ciber Inc. have moved operations overseas or announced plans to do so. (Denver Post, August 3, 2003).
In Denver, apartment vacancy rates are leveling out, leading experts to believe that the worst is over. Consumers searching for apartments are now very price-sensitive and expect very low prices. Apartment managers have been slashing rents in order to keep their units occupied. The vacancy rate for Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas, and Jefferson counties was 13.1% for the second quarter. This is unchanged from the first quarter, and up from 9.3% a year ago. Analysts are encouraged because the rates have not risen. (Denver Post, August 5, 2003).
Through the first half of 2003, new apartment building permits have dropped nearly 60% from the same period in 2002. Local economists are predicting that apartment construction will continue to drop until the economy picks up and vacancy levels decline. (Denver Post, August 5, 2003).
Median home prices in Denver reached a new high in August. The median price for a condo climbed to $155,000 as compared to $153,000 last August. The median price for a single-family home reached $238,500 as compared to $223,045 last August. (Denver Post, August 27, 2003).
According to a report issued by the Denver Chamber of Commerce, the metro Denver economy is still dormant. There are 14,700 fewer jobs than existed a year ago, with an unemployment rate of 6.1%. (Denver Post, August 7, 2003). There have been few, if any announcements of company relocations or job creation in the local area.
A bright spot in the regional economy is the tourism arena. Colorado's tourism industry has begun to rebound from the past slow year, with strong business in July and August. (Denver Post, September 2, 2003).
