National Economic News
The U.S. economy posted its strongest quarter in more than a year, in spite of the Gulf Coast hurricanes. The Commerce Department announced that the gross domestic product (GDP) increased at a rate of 4.3 percent from July through September. (The Denver Post, December 1, 2005).
Nationwide hiring increased in November, again in spite of the gulf coast hurricanes. Employers expanded payrolls by 215,000 jobs and the unemployment rate held stead at 5 percent. (The Rocky Mountain News, December 3, 2005).
The U.S. Labor Department announced that the productivity of American workers increased at an annual rate of 4.7 percent in the third quarter, which was the best showing in two years. Productivity is the largest factor determining future living standards. (The Denver Post, December 7, 2005).
On December 13, the Federal Reserve Board raised interest rates for the 13th time in a row. (The Denver Post, December 14, 2005).
The Commerce Department reported that the U.S. trade deficit rose to an all-time high of $68.9 billion in October, based upon a flood of oil imports and Chinese goods. (December 15, 2005).
Consumer prices fell in November at theri steepest rate in 56 years, due to sharp declines in oil and gasoline prices. (The Denver Post, December 16, 2005)
The U.S. stocks closed 2005 with the Dow Jones suffering its first yearly loss since 2002. The S&P 500 and the Nasdaq eked out small gains for the year. (The Denver Post, January 1, 2006).
Regional Economic News
Colorado home prices appreciated 5.6 percent in the year ending September 30. This is 45th among the states and Washington, D.C. Economists said the slower growth rate is a result of the economic slowdown of 2001 and could benefit the state in the long run by allowing Colorado housing to become more competitive. (The Denver Post, December 2, 2005).
According to the 2006 Colorado Business Economic Outlook, released by the CU Boulder Leeds School of Business, the state is on track to add 49,000 non-farm jobs in 2005, which is a 2.2 percent growth rate and will outpace the U.S. wide rate of 1.7 percent. The report predicts that the growth will carry into 2006 and predicts a 2.3 percent growth for next year. (The Denver Post, December 6, 2005)
The state unemployment rate held steady in November at 5 percent, even with the national rate. (The Denver Post, December 17, 2005).
Colorado stocks as a group beat U.S. equity indices in 2005, rising 17 percent. Denver-based Titanium Metals Corp. was the state's best performer, rising 424.1 percent. (The Denver Post, January 1, 2006).
