National
The Federal Reserve Board raised short-term interest rates on September 21 a quarter of a point, the third increase in three months. The board expressed optimism a bout the economy and expressed no changes in its goal of raising rates at regular quarter point increases over the next year. (The Denver Post, September 22, 2004).
The Labor Department announced on Sept. 4 that job creation rose in August while unemployment decreased both contributing to the national economic recovery. Economists cautioned that the increases were far from strong and that the jobs recovery since the recession of 2001 is weaker than that following any other recession in the last half century. (The Rocky Mountain News, September 4, 2004).
Freddie Mac and Fannie Mae announced that U.S. home-price appreciation will slow as interest rates rise over the next year. Home prices rose more than twice as fast as wages during the last three years. (The Rocky Mountain News, September 11, 2004).
The stock market ended September with most dismal quarter since the first quarter of 2003. The market was besieged by oil price increases and negative earnings warnings and reports from a number of companies. (The Denver Post, October 1, 2004).
Regional
The Denver Metro Chamber of Commerce announced that the Metro economic index is finally climbing upward after twenty six months below a benchmark level of 100.0 established in 1995. The index is designed to predict future economic activity in the Denver metro area. (The Rocky Mountain News, September 4, 2004).
Four leading Colorado economists predict 50,000 to 60,000 new jobs next year in Colorado as well as increased retail sales. The state housing market, however, is vulnerable to a slowdown. Housing permits are on track to rise over fifteen percent this year, which is a growth that outstrips that of the population. Some economists state that such growth is unsustainable. (The Denver Post, September 15, 2004).
Denver home prices rose 212.6 percent from 1982 until 2003, outgrowing the appreciation in other Southwestern cities. A recent report by the Wellesley, Massachusetts-based Local Market Monitor said that the Boulder-Longmont area is overpriced and both Boulder and Denver areas are at a high risk for foreclosure. (The Rocky Mountain News, September 18, 2004).
Boulder County
The Boulder County Leading Economic Index rose one percent in the second quarter, for the sixth straight quarter of growth. Correspondingly, employment in Boulder county was 1.7 percent higher in the second quarter of 2004, as compared to the same period in 2003. Unemployment fell to 4.47 percent, the lowest level since the recession began in 2001. All told, the figures indicate a strengthening of the local economy, as Colorado follows the rest of the nation in the economic recovery. (Boulder County Business Report, Oct. 1-14, 2004).
Broomfield County
In Broomfield County, employment in the second quarter rose 2.7 percent from the first quarter of this year and 3 percent from the same quarter a year ago. Unemployment dipped significantly as well, to 4.9 percent as compared to 6.2 percent a year ago. (Boulder County Business Report, Oct. 1-14, 2004).
