National News
The national economy slowed at the end of 2003, but ended the year with a 4% annual rate advance. The Department of Commerce announced that the gross domestic product statistics indicated that the economic recovery was on solid ground. (The Denver Post, Jan. 31, 2004)
The Dow Jones industrial average and the S&P 500 index hit 22 month highs in January, pushed up by positive earnings reports, and then settled lower at the end of the month, due to profit-taking. (The Denver Post, Jan. 22, 2004 and Jan. 25, 2004)
In 2003, the national homebuilding industry had its best year since 1978. Pushed by the low interest rates available, the house market was a major contributor to the improvement in the national economy. (The Denver Post, Jan. 22, 2004). With the current increases in mortgage rates, economists are predicting a drop in housing starts in 2004. If the economy continues to improve, job creation could prove a factor to fuel an increase rather than a decrease in starts. (The Denver Post, Jan. 20, 2004)
Regional News
It appears that Colorado's high technology industry is finally starting to stabilize. Job losses have slowed, indicating the worst may be over. (The Rocky Mountain News, Jan. 10, 2004). The Denver Chamber of Commerce predicts 1.2% job growth this year, equating to 15,800 jobs primarily in the areas of educational and health services, professional and business services, transportation, and warehousing and utilities. (The Denver Post, Jan. 23, 2004)
Colorado continues to lag the nation as the Colorado unemployment rate rose to 5.8%. This is above the national rate of 5.6% for December 2003. Boulder's rate was unchanged at 4.9% (The Denver Post, Jan. 28, 2004)
Denver area home prices remain flat, only 0.4% above a year ago. The median price of a single family home in January was $225,500, according to real estate reports. Sales remain strong, but a high inventory offers buyers lots of choices. (The Denver Post, Jan. 28, 2004)
