Federal Economic News
The Federal Reserve Board announced at the beginning of December that the national economy is gaining momentum, strengthened by the homebuilding, shipping and manufacturing sectors. (The Denver Post, Dec. 2, 2004).
The dollar continued at all-time lows against the euro and the Japanese yen. Despite a small correction in early December, the dollar continued its doldrums against the foreign currencies. (The Denver Post, Dec. 9, 2004).
The Federal Reserve Board raised interest rates for the fifth time since June on Dec. 14 and signaled the liklihood of more raises in 2005. (The Denver Post, Dec. 15, 2004)
The White House predicted a 3.5 percent growth rate for the U.S. economy in 2005. (The Rocky Mountain News, Dec. 18, 2004).
The index of leading economic indicators rose in November for the first time in six months, pushed upward by rising stock prices.
The stock market closed out the year with the major indexes at three year highs, driven up by positive consumer confidence reports and falling oil prices. (The Denver Post, Dec. 29, 2004).
Regional Economic News
Two economic reports issued at the beginning of December provided mixed signals on the recovery of the Colorado economy. A report on purchasing showed a contraction representing a decrease in new orders. A broader report that covered service providers as well as manufacturers related an increase. (The Denver Post, Dec. 3, 2004).
The University of Colorado issued a report that predicted growth in every non-farm business sector next year. The economic experts predicted that there will be 43,100 new jobs across the state next year. The largest gains are expected in the professional and business services area, which includes engineers to executives. They also estimated that the unemployment rate will fall from 5.3 percent to 4.8 percent. (The Denver Post, Dec. 7, 2004).
The Manpower Employment Outlook Survey was released on Dec. 14 in which employers stated that 25 percent of the companies interviewed for the survey expected to hire more employees during the first quarter of 2005. Seventy percent interviewed expected to maintain their existing staff levels. (The Denver Post, Dec. 16, 2004).
Economists also predicted that home appreciation will rise 5 percent in 2005. (The Denver Post, Dec. 7, 2004).
The state unemployment rate dipped to 5 percent in November, a percentage point lower than the previous year. (The Denver Post, Dec. 22, 2004).
The number of unsold homes now is close to a three year record level. The average wait time for a home sale is now 100 days. More expensive properties will take longer to sell. (The Denver Post, Dec. 26, 2004)
Denver recorded an all time high in home resales in 2004, and an increase of 12.6 percent over 2003. Denver is also close to it all-time high in foreclosures. (The Denver Post, Dec. 29, 2004).
